Dow jumps almost 500 points, Nasdaq rallies 3% to end higher Tuesday as omicron fears fade Market Snapshot

By Christine Idzelis and Mark DeCambre

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Geopolitical risks remain a concern though given Russia’s buildup of troops along the border of Ukraine. Biden held a video call on Tuesday with Russian President Vladimir Putin.

In economic reports, the U.S. trade deficit sank almost 18% in October after the biggest surge in exports in 13 years and a slowdown in imports partly tied to congestion at domestic ports. The trade gap shrank to $67.1 billion from a record $81.4 billion in the prior month, the government said Tuesday. Economists polled by The Wall Street Journal had forecast a $67 billion deficit.

Meanwhile, U.S. exports climbed 8.1% to an all-time high of $223.6 billion. It is the biggest monthly increase since 2008. Imports edged up less than 1% to $290.7 billion, but that is still a record high.

Separately, an updated reading on productivity costs showed that third-quarter productivity costs declined 5.2%, instead of an earlier estimate for a 5% drop.

Which companies were in focus?

Intel Corp. INTC shares rose 3.1% on a plan to list shares in its Mobileye self-driving-car unit.
Shares of American Airlines Group Inc . AAL slipped 0.2%, after the air carrier said Chief Executive Doug Parker will retire , effective March 31, 2022, after about nine years in the role.

How did other assets fare?

The yield on the 10-year Treasury note BX:TMUBMUSD10Y rose 4.6 points to about 1.479% Tuesday. Treasury yields and prices move in opposite directions.
The ICE U.S. Dollar Index DXY , a measure of the currency against a half-dozen other monetary units, was flat.
In oil futures, West Texas Intermediate crude CL00 for January delivery CLF22 rose 3.7% to settle at $72.05 a barrel, after climbing nearly 5% on Monday.
Gold futures GC00 for February delivery GCG22 edged up 0.3% to settle at $1,784.70 an ounce.
The Stoxx Europe 600 Index SXXP rose about 2.4% Tuesday, while London’s FTSE 100 Index UKX climbed 1.5%, after putting in its largest one-day point gain on Monday since July 21.
In Asia, the Shanghai Composite Index SHCOMP closed 0.2% higher, while the Hang Seng Index HSI rose 2.7% in Hong Kong and China’s CSI 300 /zigman2/quotes/210598128/delayed XX:000300 -0.80% advanced 0.6%. Japan’s Nikkei 225 Index NIK rose 1.9%.