Merck up as FDA panel votes to back the COVID pill.
Dec 1 Reuters -- Wall Street's main index rebounded more than 1% on Wednesday as investors looked past concerns over rising inflation and the new Omicron coronavirus variant, while shares of Merck rose on progress in approval of its COVID 19 pill.
Merck Co Inc gained 1.9% after a panel of advisers to the U.S. Food and Drug Administration narrowly voted to approve the agency's use of the drugmaker's antiviral pill to treat COVID - 19.
All 11 major S&P sectors advanced in a broad-based rally, with energy and utilities shares jumping more than 2% each.
Banks gained 1.7%, recouping some losses suffered in the previous session.
Shares of the tech giants Amazon.com, Apple Inc, Tesla Inc, Google, Alphabet Inc and Microsoft Corp, which are favored at times of uncertainty, added between 0.8% and 2.5% to give the biggest boost to S&P 500 and the Nasdaq.
Andre Bakhos, managing director of New Vines Capital LLC in Bernardsville, New Jersey, said people are confident in the earnings predictability of tech stocks.
In a hearing before the House Committee on Financial Services, Federal Reserve Chair Jerome Powell reiterated his comments from Tuesday about the acceleration of taper at the central bank's December meeting amid a surge in inflation and a stronger economy.
Powell said that the Fed's two goals of price stability and jobs recovery are in tension and that it will use tools to make sure inflation doesn't get into trouble.
The US stock market was down on Tuesday after Powell's hawkish tone was a double whammy for markets who were already nervous about the spread of the Omicron variant and its potential to hinder a global economic recovery.
As investors get their heads around Powell's comments and keep their finger on the pulse of Omicron, we're seeing uncertainty manifest with a high level of volatile price action, Bakhos said.
Market participants were awaiting a report from the Fed, known as the Beige Book, on current economic conditions, to get more insight into the central bank's stance on inflation. The existing COVID 19 vaccines will work against the variant, and the World Health Organization expects to have more information on the transmissibility of the Omicron variant within a few days.
The Dow Jones Industrial Average was up 355.41 points, or 1.03%, at 34,839. The S&P 500 was up 66.83 points, or 1.46%, at 4,633. The Nasdaq Composite was up 189.11 points, or 1.22%, at 15,726, and the Nasdaq Composite rose by 189.11 points, or 1.22%. Separate data showed that the US private employers maintained a strong hiring pace in November, while factory activity rose slightly as input prices eased, new orders grew steam and the employment situation improved marginally.
Salesforce.com Inc said current-quarter profits were below estimates, as it faces stiff competition from rivals, including Microsoft, which sent its shares down 6.7%.
Advancing issues outnumbered decliners by a 3.30 to 1 ratio on the NYSE and a 2.35 to 1 ratio on the Nasdaq.
The S&P index recorded 10 new 52 week highs and three new lows, while the Nasdaq recorded 28 new highs and 83 new lows.