Dow futures fall 800 points on concerns about new COVID variants detected in South Africa

US stock futures fell on Friday as the global market plummeted after scientists detected a new COVID variant in South Africa that could be responsible for the recent surge in dramatic incidents.

Investors are returning to a shortened day of trading after Thanksgiving holidays.

How are stock index futures traded?
  • S & P500 Futures

    84 points (1.8%) decrease to 4,615

  • Dow Jones Industrial Average 30 Average Futures

    789 points (2.2%) down to 34960

  • Nasdaq-100 Futures

    1.2%, or 193 points down to 16,173

on Wednesday, Dow Jones Industrial Average 30

It fell 9.42 points and ended almost flat at 35,804.38. S & P 500

According to Dow Jones market data, it fell 0.2% to close at 4,701.46, just 0.1% below the record closing price of 4,704.54 on November 18.Nasdaq Composite Index

It increased by 0.4% to 15,84.23.

What is driving the market?

The discovery of a new COVID variant South African Health Minister Joe Fara announces Friday.. He said the number of mutations was high and scientists were concerned because of the dramatic surge in infectious diseases that the country had seen in the last four to five days.

At an online press conference, he said a variant known as B.1.1.529 and expected to be called the Nu variant was also found in tourists visiting South Africa in Botswana and Hong Kong. Because scientists do not know whether they are more deadly or simply contagious, the World Health Organization’s Technical Working Group is holding an emergency meeting to evaluate variants.

Jeffrey Halley, Senior Market Analyst at OANDA, said: With a memo. “The only thing we know so far is that B.1.1.529 has changed significantly, but the market is missing out on opportunities.”

South Africa reported more than 1,200 on Wednesday and more than 2,465 on Thursday after new cases appeared to be stable at 200 a day. Scientists and health officials are concerned that such highly mutated variants may escape the vaccine. The UK government, which goes into effect on Friday, has banned flights from the country along with five other African countries.

As futures fell on the Nikkei Stock Average and Asian stock prices fell,

With an oversized 2.5%, investors flocked to perceived safer assets such as gold.


Jumping from $ 25 to $ 1,810.50, the Japanese yen

And government bonds.yield

For 10 years, the US Treasury fell 12 basis points to 1.52%.

U.S. crude oil prices


Concerns about declining demand among the new varieties were recognized, resulting in a 6% drop to $ 73.62 a barrel.

“Little is known at this stage. Mutations are often less serious, so you shouldn’t jump to the conclusion, but there are clearly a lot of concerns about this. South Africa is also a sequencer. Being one of the world leaders, this kind of news could come from South Africa more than many countries. Deutsche Bank strategist, led by Jim Reed, told customers in a memo.

Investors are returning from a Thanksgiving break to a shortened session for the US market. This often results in low trading volumes as traders often wait until Monday to return. There is no economic data on Friday’s calendar. However, this week was boiled over by the rise in COVID cases in Europe and concerns about new restrictions.

Fear of new varieties obscured Black Friday’s shopping day, when consumers focus on retailers when buying bargains.

read: Faced with the biggest inflation surge in 30 years, shoppers expect to spend more on this holiday season

Dow futures fall 800 points on concerns about new COVID variants detected in South Africa

Source link Dow futures fall 800 points on concerns about new COVID variants detected in South Africa

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