US Equities Recovering During North American Session

US shares have continued to recover in the second half of the US session, with the recovery now more broad-based with tech and growth stocks joining the party despite continued elevation in yields.

The S&P 500 index is now up by nearly 1.5% and is eyeing a test of the 4600 level. The Dow continues to lead and is now up closer to 2.0%. The Nasdaq 100, meanwhile, is up about 1.0%, meaning it has reversed more than 1.8% from prior session lows.

There haven’t been any fresh fundamental catalysts to drive the extension of gains in the second half of the US session.

Traders and investors continue to cite an easing of Omicron fears as supportive of the equity complex. As for the modest outperformance of value stocks versus growth on Monday amid sharp upside in US bond yields, market commentators have cited expectations that the Fed will announce an acceleration of its QE tapering at next week’s meeting, which should open the door to a swifter start to rate hikes.

Monday’s price action provides an evidence that the Santa rally was not yet dead. Over the weekend, top US infectious disease. expert Anthony Fauci said on CNN that it doesn’t look like Omicron has a “great degree of severity”.