US Shares Sharply Surge After Three Day Drop

Markets staged a considerable comeback on Tuesday, with all three major averages up more than 1% as investors weighed news of federal involvement to mitigate Omicron and imminent authorization of an at-home Covid-19 treatment.

In a turnaround from earlier losses, the Dow rallied more than 500 points during intraday trading, up 1.46%, while the S&P gained 1.49% in a 225-point jump. The Nasdaq Composite also extended gains of 1.29%.

The moves come after traders had digested news the White House will deploy 1,000 military personnel to hospitals as Omicron cases rise and purchase 500 million at-home COVID-19 tests that will be available for Americans to buy.

The FDA is also expected to authorize at-home treatment pills for the virus from Pfizer (PFE) and Merck (MRK). Shares of Pfizer were down 4.02% at $58.56 a piece, while Merck traded at $75.67 per share, down 0.97%.

With virus fears triggering more restrictions and cancellations, concerns around Omicron’s spread weigh on traders still reeling from the Federal Reserve’s hawkish shift last week to more quickly withdraw monetary support and boost forecasts for rate hikes next year.

Investors are also processing an unexpected blow to Biden’s economic agenda after Senator Joe Manchin quashed the administration’s long-deliberated BBB Act, citing concerns about inflation, the national debt and ongoing pandemic.

The news sent solar energy and electric vehicle stocks plummeting in a sell-off that placed Tesla (TSLA) below $900 for the first time since October. The stock closed down 3.5% at $899.94.