US stocks extend rebound as Omicron fears recede and early antiviral data suggests effectiveness against variant

• US stocks soared on Tuesday, extending its rebound as fears of Omicron start to recede.
• Early data from GlaxoSmithKline shows that its antiviral drug retains activity against the variant.
• Oil prices surged on Tuesday as investors now see little chance of Omicron disrupting the economic recovery from the pandemic.

US stocks soared on Tuesday, with the Nasdaq jumping nearly 2% as fears of the COVID-19 Omicron variant begin to recede.

Early data from GlaxoSmithKline is likely also easing concerns, as the drug maker said its antiviral treatment retains in vitro activity against the full Omicron spike protein. That data lines up with prior comments from Merck and Pfizer, with both saying last week they expect their antiviral pill to work against all COVID-19 variants.

With Omicron now seen as having a diminishing chance of disrupting the economic recovery from a global pandemic, oil prices surged about 2%.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

• S&P 500: 4,653.69, up 1.35%
• Dow Jones Industrial Average: 35,612.63, up 1.09% (385.60 points)
• Nasdaq Composite: 15,525.65, up 1.97%

Cathie Wood's Ark Invest is having a tough year, as most of its fund strategies are in a bear market even as the broader stock market is just 2% away from record highs. Six of Ark's eight funds are in the red, with its flagship disruptive innovation fund down 24% year-to-date.

The recovery in stocks has also extended to cryptocurrencies following their steep weekend sell-off. Bitcoin is now back above $50,000 and metaverse tokens are once again soaring higher.

Congresswoman Alexandria Ocasio-Cortez isn't participating in the crypto rally, as she explained that she doesn't own bitcoin because she wants to be an unbiased lawmaker.

West Texas Intermediate crude oil jumped as much as 2.36% to $71.13 per barrel. Brent crude, oil's international benchmark, rose as much as 2.16% to $74.66 per barrel.

Gold rose as much as 0.02% to $1,779.90 per ounce.