Dow surges over 560 points to erase Monday's ugly selloff and turn positive for the week as Biden vows to shun COVID lockdowns

U.S. stock indexes closed sharply higher Tuesday, wiping out Monday’s ugly loss, as the Biden administration vowed to shun March 2020-style lockdowns and outlined plans to fight rising COVID-19 cases driven by the omicron variant. The Dow Jones Industrial Aveage rose 560 points, or 1.6%, to reach 35,504, on a preliminary basis. The S&P 500 index closed up 1.8% to around 4,649, while the Nasdaq Composite Index advanced 2.4% to close at 15,341, marking the sharpest daily gain since Dec. 7, FactSet data show. Biden said Tuesday the answer is “absolutely no” as to whether March 2020-style lockdowns will return to the U.S. as the omicron variant rages, while also outlining a omicron-fighting plan to get booster shots in arms, distribute 500 million free at-home COVID-19 testing kits and the immediate deployment of military doctors, nurses and other medical professionals to six hard-hit states and other measures. Investors also were encouraged by news Monday that the Senate will vote on President Biden’s Build Back Better economic plan in January despite Democratic Sen. Joe Manchin’s opposition to it, suggesting further negotiations with the West Virginia lawmaker are likely. For the week, the Dow is up 0.4%, the S&P 500 is up 0.6% and the Nasdaq Composite is looking at a 1.1% weekly gain thus far. Markets will be closed on Friday in observance of Christmas. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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