The twin issues that have recently rocked stocks -- the omicron coronavirus variant and a hawkish Federal Reserve -- did nothing this week to deter dip buyers, who powered American equities to their best rally in 10 months.
As the latest Covid-19 strain sparked fresh restrictions around the world and surging consumer prices kept the Fed on track to tighten, bargain hunters poured back in, powering the S&P 500 to an all-time high with gains in four of the five days. Hedge funds, who cut equity exposure at a ferocious pace during the November rout, re-emerged as buyers. Equity funds lured money for an 11th straight week. And bullishness crept higher in the options market.
