NEW YORK: Wall Street stocks jumped early Tuesday, extending a rally from the prior session on optimism about the latest Covid-19 variant and bullish investor momentum.
The latest advance is evidence of a "fear of missing out" on further gains as investors cheer early signs that the Omicron variant of Covid-19 appears to be less virulent than earlier strains, even if it is highly contagious.
"It's fair to say that the market is finding reason in the headlines to worry less about the Omicron variant, yet the concerns about the Fed's policy shift continue to simmer," said Briefing.com analyst Patrick O'Hare, citing the Federal Reserve's recent pivot on monetary policy.
"For the time being, though, the stock market is taking leave of those worries and is embracing a buy-the-dip mantra that has worked so well for so long."
About 25 minutes into trading, the Dow Jones Industrial Average was up 1.2 percent at 35,666.04.
US stocks mixed amid elevated volatility
The broad-based S&P 500 advanced 1.8 percent to 4,673.80, while the tech-rich Nasdaq Composite Index surged 2.5 percent to 15,606.54.
Major indices rose about one percent or more on Monday after declining last week on worries over Omicron and the Fed.
Tuesday's economic data included a drop in the US trade deficit in October following a bigger rise in exports than imports.
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