US stocks continued to rally on Friday, thanks to optimism that the economic recovery could weather the coronavirus outbreak. Latest data indicated robust growth in the US, while research in the UK said people infected with omicron have a lesser chance to end up in hospitals. But authorities still warned that the rapid spread of the virus could result in more serious cases.

All in all, global stocks are up about 3% this month, reflecting the resilience of the stock market in the face of coronavirus risks and hawkish monetary policies to contain high inflation.

"We certainly favor value into 2022 overgrowth and are much more on the short duration side both when we look at equities and fixed income," said Angel Oak Capital Advisors portfolio manager Cheryl Pate.

She told Bloomberg that US inflation could go even higher, so the Fed will face delicate balancing tasks to contain price pressures while sustaining the economic recovery.

Meanwhile, former Treasury Secretary Lawrence Summers warned of a testing period for the US economy in the coming years, with the risk of a recession followed by stagnation. He said the Fed was late in realizing the dangers of inflation.

Paul Christopher, head of global market strategy at Wells Fargo, also said: "Omicron will create some slowdowns in the economy, perhaps some slowdowns of production which could add to inflation pressures in the short term, but this will disappear and the economy will cope with the situation."

Latest data from the US showed that consumer sentiment improved, along with new home sales, orders for durable goods and jobless claims. But consumer spending, adjusted for inflation, remained flat, mitigating the risks associated with rapidly rising prices.

With regards to the coronavirus, one good news is that Merck & Co's Covid-19 pill has been approved by US regulators, giving patients at high risk of infection another option for home treatment.

Meanwhile, doubts remain about the effectiveness of the vaccine produced by Sinovac Biotech Ltd, despite it being one of the most widely used in the world.

United Airlines and Delta Air Lines canceled 200 flights on Friday due to staff shortages associated with a sharp increase in omicron infections.