Equity futures flat after market recovery as investors reassess Omicron risk

Equity futures were flat on Monday night trading after a rebound from the roller coaster week as investors overlooked the potential impact of the new Omicron coronavirus variant.

The Dow Jones Industrial Average futures rose by just 15 points. Both S & P 500 futures and Nasdaq 100 futures have changed little.

The overnight session followed a comeback on Wall Street, where the Dow Jones Industrial Average scored nearly 650 points. The S & P 500 surged 1.1% on Monday, with all 11 sectors recording a rise. The Nasdaq Composite index rose 0.9% and turned higher to end the day. The rally was led by travel-related stocks such as airlines and cruise ship operators.

“By alleviating Omicron’s concerns, investors are becoming more hawkish in favor of the Fed,” said Fiona Sinkotta, senior financial market analyst at Citi Index. “The first report suggests that the new COVID variant is less serious, so the market is dialing back to the potential economic damage that Omicron can cause.”

Investors are betting that the new Covid-19 stock can cause milder illnesses than feared. Dr. Anthony Fauci, Chief Medical Advisor of the White House, said on Sunday “It will be encouraging“He warned, but more information is needed to fully understand it.

Meanwhile, investors are also looking at the possibility that the Federal Reserve will begin to abolish its massive pandemic easing policy and start raising rates sooner than expected.

Federal Reserve Comments Suggest Central Bank At a meeting in December next week, we may decide to double the pace of taper to $ 30 billion per month... The first discussion could begin at the same time as the December meeting on when to raise interest rates and the amount for next year.

Chris Larkin, Trading Managing Director of E-Trade Financial, said: “On the one hand, Omicron may not be that threat, but on the other hand, the Fed could accelerate tightening, so there could be some changes in the market,” he said.

The market focus will shift to new inflation data later this week. The consumer price index, which is expected to be even higher than last month, could trigger the Fed to tighten its policies more quickly.

Equity futures flat after market recovery as investors reassess Omicron risk

Source link Equity futures flat after market recovery as investors reassess Omicron risk

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