EDITOR'S NOTE
The major averages rebounded on Monday from Friday’s massive sell-off and what was the worst day for the Dow Jones Industrial Average since Oct. 28, 2020. Concerns about the new Covid omicron variant remain. However, President Joe Biden quelled fears when he said economic shutdowns are currently off the table.
"If people are vaccinated and wear their masks, there's no need for lockdowns," Biden said at a press conference on Monday. The president also said there would be no new travel restrictions.
On Monday, the Dow rebounded roughly 0.7%, and the S&P 500 popped 1.3%. The tech-heavy Nasdaq Composite rose nearly 1.9%. All three indexes lost more than 2% in Friday's session.
While short-term uncertainty around the variant remains, Truist gave clients evidence that stocks should be OK in the long-term, according to history.
Wall Street's fear gauge — the CBOE volatility index — retreated on Monday after a 10-point spike on Friday. Truist looked at the last 19 times since 1990 when the VIX surged more than 40% in a single day and found markets were higher 18 out of 19 times a year later, with an average gain of 20%.
“Evidence suggests selling on the type of fear seen on Friday has often been the wrong decision, at least longer term,” said Keith Lerner, chief market strategist at Truist. 
“That does not imply stocks always rally immediately. In several of the short-term periods we reviewed, there were sharp drawdowns,” said Lerner.
CNBC's Jim Cramer also touched on the short-term implications for stocks. He said he's concerned about buying the dip right now, as “silly sellers” could exacerbate the omicron sell-off.
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