US stock futures soar as investors cheer positive Omicron and economic data ahead of the holiday season

• US stock futures rose Thursday as data showed that Omicron’s impact may not be as bad as feared.
• The US economy grew at an annual rate of 2.3% in the third quarter, while consumer confidence improved in December.
• Airlines were among the best-performing stocks in Europe, with British Airways parent company IAG rising 4.5%.
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US stocks are poised to hit a third day of gains on Thursday, part of a global rally driven by investors taking heart from positive reports about the impact of the Omicron coronavirus variant.

Dow Jones and S&P 500 futures were up 0.27% at 6:45 am ET, while Nasdaq futures were up 0.17%, signaling a modestly higher start to the open later in the day. Shares rose for a second day on Wednesday, with Tesla and Pfizer on the rise.

Trading was thin, with low liquidity, ahead of the holiday season. US stock and bond markets are closed on Friday.

Markets also received some rebound from positive data out of the US on Wednesday. Official figures showed US consumer confidence improved in December, suggesting the economy will continue to grow in the first quarter of 2022.

Trade Department Wednesday’s figures indicated GDP grew 2.3% year-on-year in the third quarter, compared to an earlier estimate of 2.1%. But it was still lower than the 6.7% jump for the second quarter.

Stocks and other assets have had a bumpy ride since Omicron’s detection in late November, as markets fluctuated in response to new headlines. But fears about the impact of the new strain of virus on economies cooled after positive news on Wednesday.

Research by Imperial College, London suggests that people infected with Omicron may experience milder illness than with the Delta variant. It found that Omicron infections carry a 15% to 20% lower risk of hospitalization.

Meanwhile, a study of South Africa’s National Institute of Communicable Diseases showed that the Omicron variant results in 80% fewer hospital admissions.

“A cocktail of better US third-quarter GDP data, along with positive ommicron headlines, has further vaccinated financial markets against a year-end sell-off,” said Jeffrey Halley, a senior market analyst at OANDA. in a note.

In Europe, the pan-continental Euro Stoxx 600 was up 0.6% in early trading on Thursday, while the Frankfurt DAX was up 0.6%.

London’s FTSE 100 added 0.25% after Prime Minister Boris Johnson said no new restrictions would be introduced for the UK before Christmas. Daily COVID-19 cases in the UK rose above 100,000 Wednesday for the first time.

Airlines were among the best-performing stocks, with British Airways parent company IAG and Hungarian budget carrier Wizz Air each jumping more than 4.5% by mid-morning.

In China, the city ​​of Xian was shut down, in the largest shutdown since the start of the pandemic, after registering 127 COVID-19 cases. But it had no noticeable impact on regional markets, which seemed driven by positive news elsewhere.

The Shanghai Composite gained 0.5% and the Hang Seng in Hong Kong rose 0.4%. The Nikkei in Tokyo closed 0.8% higher.

Oil prices rose overnight as the Omicron news gave hope for future demand. Also helping was bigger than expected inclusion in US stocks, with crude oil inventories falling by 4.7 million barrels.

Brent crude futures last traded 0.3% higher at $75.56 a barrel, and West Texas Intermediate rose 0.4% to $73.07 a barrel.

The US dollar was roughly flat, rising just 0.09% to 96.16.

Read more: 2022 Stock Market Outlook: The Top Strategists at Goldman Sachs, JPMorgan and More Share Their Forecasts for the S&P 500 Next Year, and How You Should Invest Your Money