Wall Street stocks were in the green again prior to the open on Wednesday after the S&P 500 and Nasdaq Composite both had their best day since March in the previous session.
As of 1210 GMT, Dow Jones futures were up 0.57%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.56% and 0.49% firmer, respectively.
The Dow closed 492.40 points higher on Tuesday, extending gains recorded in the previous session as fears regarding the Covid-19 omicron variant subsided.
The omicron variant was again in focus before the bell on Wednesday, with preliminary reports indicating that the strain significantly reduces antibodies generated by Pfizer and BioNTech‘s vaccine.
However, it was still thought that while omicron was highly contagious, the variant’s symptoms also appeared to be milder than previous iterations of the coronavirus.
IG‘s Chris Beauchamp said: “The headlong rally in global markets has stalled, but the overall outlook for equities remains firmly positive. The previous three sessions put markets firmly back on the front foot, with Omicron concerns almost entirely evaporating. Asian markets continued to make headway, and despite some worrying data on vaccine efficacy against the new variant the overall impression is that markets have now done their best to price in the variant and any potential new restrictions.
“With the Fed’s tapering and potential earlier rate hike also now firmly in the news investors are able to look towards the future with a greater degree of confidence. At any rate the rally that began last Friday seems set to continue, although the real ‘Santa rally’ should still kick in later in the month.”
On the macro front, US mortgage applications increased 2% in the seven days ended 3 December, according to the Mortgage Bankers Association of America, a marked improvement when compared to the prior week’s 7.2% decline.
Still to come, the Bureau of Labor Statistics‘ JOLTS job openings and labour turnover survey for October will be published at 1500 GMT.
In the corporate space, Campbell Soup and GameStop will both report earnings on Wednesday.