Wall Street hits reset after market 'froth' but Fed Reserve fears loom

Uncertainties remain over Omicron even as optimism it may cause milder illness has helped boost markets

Investors who used the stock market’s recent swoon to scoop up shares are hoping the last weeks of the year bring renewed strength to equity prices, even as worries over the Omicron variant and a more aggressive Federal Reserve continue to loom.

A two-day surge has put the S&P 500 back near record highs and nearly erased the more than 4 per cent loss the index suffered after the emergence of the new Omicron variant of the Coronavirus and a potential hawkish pivot from the Federal Reserve.

Uncertainties remain over Omicron even as optimism it may cause milder illness has helped boost