Market Watch: Stock futures are muted following Dow’s 500-point rebound

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Major averages rebounded from a three-day losing streak spurred by fears about the omicron Covid variant.

Dow Jones Industrial Average futures hovered 0.11% lower. S&P 500 futures inched 0.15% lower and Nasdaq 100 futures slipped 0.23%.

All three of the major averages rallied in regular trading, pushing their weekly gains into the green. The Dow added 560 points, or 1.6%. The S&P 500 rose 1.8% and the Nasdaq Composite gained 2.4%.

Travel-related stocks were in relief rally mode as investors put Covid-related fears aside and bought the dip. Delta Air Lines rose 5.9%, United Airlines gained 6.9% and Carnival added 8.7%.

“Some of the best performing stocks are ‘re-opening’ stocks, also indicating that investors are still willing to look through the headwinds from the rise in virus cases,” Goldman Sachs’ Jeff Currie said in a note Tuesday. “The reaction to the virus perhaps signifies an acceptance (at least for now) of the ‘new normal’ … in which investors may be determining that Covid waves are becoming a regular thing – seasonal like the flu perhaps.”

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