Stocks, U.S. futures rise on Omicron optimism

Stocks rose with U.S. futures as investor optimism grew that the global recovery can weather the omicron flareup.

Stocks rose with U.S. futures as investor optimism grew that the global recovery can weather the omicron flareup.

Travel and leisure and banking shares boosted European shares amid thin trading ahead of Christmas, and U.S. contracts ticked up with the S&P 500 Index within reach of a record high. Tesla Inc. rose in premarket trading as Elon Musk sold more stock. Gains in Japan boosted Asian stocks. 

Investors are wagering the latest COVID-19 variant won’t derail global growth, even as officials remain cautious about its spread. A trio of studies signaled omicron may be less likely to land patients in hospital than delta, while antiviral treatments and booster jabs are ramping up. That’s helping markets that have been whipsawed by virus worries, tighter policy and a foggy outlook for U.S. fiscal stimulus.

The dollar was steady, while Treasury yields rose. The pound rose to its highest level in almost a month as traders stepped up bets on a Bank of England rate hike.

“Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know,” Carol Schleif, BMO Family Office deputy chief investment officer, said on Bloomberg Television. “But it seems like it’s edging toward something more positive.”