U.S. stock futures, oil prices and Treasury yields rose as Omicron fears eased

U.S. stock futures climbed as investors bet that the impact of the Omicron variant of Covid-19 would be milder than previously thought.

Futures for the S&P 500 gained 1.1% Tuesday. The index jumped Monday, recouping nearly all its losses for last week. Contracts for the tech-focused Nasdaq-100 jumped 1.7% Tuesday, and futures for the Dow Jones Industrial Average rose 0.8%.

Hopes that the new strain will have a less pronounced impact on travel and consumer confidence have bolstered stocks this week. Scientists and vaccine makers are still assessing the severity of Omicron and how well existing vaccines may work against it. Lower trading volumes in the lead-up to the holidays are likely to cause exaggerated moves in either direction, analysts say.

“We’re in this period where investors are grappling for any news they can find and that, coupled with low liquidity, is leading to some big moves,” said Hugh Gimber, a strategist at J.P. Morgan Asset Management.

China’s efforts to inject liquidity into the financial system has also helped reassured investors that the slowdown in the world’s second-largest economy will be managed, Mr. Gimber said. On Monday, the People’s Bank of China said it would reduce the reserve requirement ratio for banks by 0.5 percentage point to 8.4%, starting Dec. 15. This would unleash about 1.2 trillion yuan, equivalent to around $188 billion, into the financial system.

Shares of Chinese property developers listed in Hong Kong were broadly higher on the plans, which could assist China’s debt-laden real-estate sector. Sunac China Holdings surged more than 15%, while China Aoyuan Groupgained more than 10%.

Hong Kong’s broader Hang Seng Index gained 2.7%, while China’s Shanghai Composite edged up 0.2%. Japan’s Nikkei 225 rallied 1.9% and South Korea’s Kospi added 0.6%.

Elsewhere, the pan-continental Stoxx Europe 600 jumped 1.2%.

Brent crude futures, the benchmark in global oil markets, rose 1.8% to $74.41 a barrel, as fears of renewed Covid-related lockdowns recede.

In bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.443% Tuesday from 1.433% Monday. Yields rise when prices fall.

Bitcoin, the world’s largest cryptocurrency by market value, rose 2.6% to $51,307.04 as it continued to recover from a weekend selloff.