Stocks Rally Again as China Acts, the Nasdaq is Soaring—and What Else Is Happening in the Stock Market Today

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Optimism was rife in Wall Street about the Omicron version of the coronavirus.

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The stock market was getting a double boost on Tuesday. The Chinese central bank has moved to loosen monetary policy, while fears around the Omicron Covid-19 version are easing.

By midday, the Dow Jones Industrial Average rose 534 points, or 1.5%, building on Monday’s rally of 646 points when the index closed at 35,227. The technology-stock-heavy Nasdaq Composite gained 2.8%, compared with a 2% gain in the S&P 500. The Dow is on pace for its best day since 1997 in the first five days of December.

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“A Chinese RRR [reserve ratio requirement] Cut, promises of more support for the economy and hey, prestige, the mood has been lifted, as if by magic,” wrote Kit Jux of Societe Generale.

On Monday, the People’s Bank of China said it would reduce the percentage of cash required for banks from 8.9% to 8.4%. This will free about $200 billion in debt. China is trying to counter a slowing domestic economy, although the move seems to boost markets in other geographies.

The move also counteracts the policy of other central banks around the world. The Federal Reserve is moving toward a policy that will raise short-term interest rates and long-term bond yields, while the European Central Bank may raise interest rates in 2022.

Furthermore, it seems unlikely that countries around the world will have to establish new lockdowns because of the Omicron version. Not only has it emerged that the variant may not cause serious illness, but GlaxoSmithKline (ticker: GSK) said on Tuesday that its COVID-19 antibody treatment was effective against Omicron.

Overseas, Hong Kong’s Hang Seng index jumped 2.7% and the pan-European Stokes 600 rose 2.2%.

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The mood also propelled oil prices, which have been under intense pressure since Black Friday, amid fears that demand could shrink if a new wave of widespread lockdowns sparked by Omicron’s spread.

Futures contracts West Texas Intermediate crude rose more than 3% to $72 a barrel.

Here are five stocks trending Tuesday,

Intel (INTC) jumped 5.5% after news that the chipmaker would take its Mobileye self-driving car unit public.

Alibaba (BABA) was up 1.7% after rallying 10.4% on Monday. Shares of the Chinese e-commerce giant have been under pressure recently following poor quarterly results and widespread regulatory fears about US-listed Chinese companies.

Nvidia (NVDA) rose 3.8% with the maker of graphics processing units down nearly 10% over the past five days.

MongoDB (MDB) stock rose 14.5% when the company reported a loss of 11 cents per share, which was better than an expected loss of 38 cents per share on sales of $227 million, which was $205 million. was more than expected.

Coupa Software (COUP) stock gained 4.9% after the company posted better-than-expected profits. Analysts at Raymond James lowered their price target on the stock from $315 to $195.

Write to Jacob Sonenshine at [email protected] and Jack Denton at [email protected]

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