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U.S. stocks retreat significantly in news of the first U.S. Omicron incident

Stocks showed a strong upward move in early Wednesday trading, but fell sharply in the course of the session. Due to the recession of the day, the Dow fell to a closing price of nearly two months, while the Nasdaq and S & P500 reached their lowest closing prices in more than a month.

On a major average, the decline was nearing its end, ending the session at the worst level of the day. The Dow fell 461.68 points (1.3%) to 34,022.04, the Nasdaq fell 283.64 points (1.8%) to 15,254.05, and the S & P 500 fell 53.96 points (1.2%) to 4,513.04.

The significant dip in Wall Street occurred after the US Centers for Disease Control and Prevention revealed that the first confirmed case of Covid-19 caused by a new Omicron mutant was detected in the United States.

The CDC said the first confirmed case of Omicron was detected in a Californian individual returning from South Africa on November 22, 2021.

“Individuals who are completely vaccinated and have mildly improved symptoms have undergone self-quarantine and have been positive on the test ever since,” the CDC said. “All close contacts were contacted and the test was negative.”

The sharp setback reflects recent volatility, as traders are quite sensitive to the latest news about Omicron variants. coronavirus..

While news of variant detection plummeted last Friday, signs that the variant’s symptoms were “very mild” contributed to Monday’s rebound.

However, comments from Covid-related pharmaceutical companies suggesting that vaccines and treatments are less effective against Omicron contributed to Tuesday’s recession.

Traders have largely ignored the latest US economic news, including a report released by payroll company ADP, and showed that private sector employment increased slightly more than expected in November.

According to ADP, employment in the private sector surged with 570,000 jobs revised in October, followed by a surge in 534,000 jobs in November.

Economists expected private sector employment to increase by approximately 525,000 compared to the 571,000 additional jobs initially reported last month.

“It’s too early to determine if the Omicron variant could delay employment recovery in the coming months,” said Nera Richardson, chief economist at ADP.

The Supply Chain Association released another report showing that manufacturing activity grew at a slightly faster rate in November.

According to the ISM, manufacturing PMI rose from 60.8 in October to 61.1 in November, with values ​​above 50 indicating sector growth. Economists expected the index to be up to 61.0 inches.

Sector news

Airline stocks showed a significant decline during the course of the trading session, and the NYSE Arca Airline Index plummeted 4.9% after a 3.4% surge in early trading.

Gold stocks also showed significant weaknesses, as reflected in the 3.2% nosedive society of the NYSE Arca Gold Bugs Index. Despite rising gold prices, the index fell to its lowest closing price in more than a month.

As the day went on, oil service stocks were also under pressure and the Philadelphia Oil Services Index fell 2.6%. Due to the sharp drop, the index ended the session at the lowest price in three months.

Oil service stocks were sold as crude oil prices delivered in January reached a high of $ 69.49 a barrel and then fell $ 0.61 to $ 65.57 a barrel.

Software, natural gas and retail equities also fell, along with most other major sectors, with a noticeable downturn.

Other markets

In foreign trade, stocks market During the trading on Wednesday, the entire Asia Pacific region rose almost. Japan’s Nikkei 255 Index and China’s Shanghai Composite Index both rose 0.4%, while South Korea’s Kospi rose 2.1%.

Major European markets also showed a strong upward trend on the day. The UK’s FTSE 100 index rose 1.6%, while the French CAC 40 index and the German DAX index rose 2.4% and 2.5%, respectively.

In the bond market, government bonds saw their initial weakness and rose slightly during the session. As a result, the yield on benchmark 10-year bonds, which move in the opposite direction of the price, reached a high of 1.497% and then fell by almost a basis point to 1.434%.

Future outlook

Further news on Omicron’s front may draw attention on Thursday, along with the Labor Department’s report on weekly unemployed claims.

However, trading activity may be somewhat curtailed as traders look forward to Friday’s more closely watched monthly employment report.

Contact for comments and feedback: editorial@rttnews.com

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U.S. stocks retreat significantly in news of the first U.S. Omicron incident

Source link U.S. stocks retreat significantly in news of the first U.S. Omicron incident

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