Dow swings, swings 1,000 points, stocks turn sharply in over a year as US confirms first Omicron case

The US stock market started in December the same way it did in November, with a sharp trading session that saw the Dow Jones Industrial Average swing nearly 1,000 points from peak to trough, triggering a worrisome phase of volatility in the last month of 2021.

How are stock index futures traded?
  • S&P 500 . Index
    SPX,
    -1.18%

    It fell 53.96 points, or 1.2%, to close at 4,513.04, after hitting an intraday high of 4,652.94.

  • The Big Capital Index ended the session below its 50-day moving average at 4,539.32.

  • Dow Jones Industrial Average
    DJIA,
    -1.34%

    It fell 461.68 points, or 1.3%, to end at 34,022.04 points, after recording Wednesday’s peak at 35004.64, up about 520 points.

  • The Dow closed below its 200-day moving average at 3,4361.27 for the first time since July.

  • Nasdaq Composite Index
    COMP,
    -1.83%

    It fell 283.64 points, or 1.8%, to 15,254.05 points, but recorded an intraday high of 15,816.82.

  • The Nasdaq Composite closed below the short-term 50-day moving average at 15266.03.

  • Russell 2000 . index rut It fell 2.3% to 2147.42, posting its first correction since June 2020.

employment TuesdayThe Dow Jones Industrial Average fell 652.22 points, or 1.9%, to 3,4483.72 points. The S&P 500 is down 1.9%, while the Nasdaq Composite is down 1.6%.

What is driving the markets?

Stock indices gave up on what was shaping up to be a strong rebound, after Dr. Anthony Fauci, President Joe Biden’s chief medical advisor, said the United States had confirmed its first omicron case of the coronavirus that causes COVID-19.

The comments come a day after the market was swept away by a combination of hawkish comments from Federal Reserve Chairman Jerome Powell and concerns surrounding the new strain of the coronavirus jittering investors.

Fauci . said that “the California and San Francisco Departments of Public Health and the CDC have confirmed that a recent case of COVID-19 among an individual in California was caused by an omicron variant.”

Although the final emergence of a US case was widely expected, comments from a public health professional took the wind out of the sails of the market, which enjoyed a more upbeat tone earlier on Wednesday.

Investors even shrugged off Powell’s recent comments, after he reiterated his view that the central bank may have to tighten financial conditions soon to combat soaring inflation from new COVID variants such as the omicron, Witness for the second day Before lawmakers on the state of the economy in the face of the COVID-19 pandemic. Powell toned down his remarks by saying, “The tapering doesn’t have to be a disruptive event for the markets, and I don’t expect it to be. It hasn’t been so far – we’ve telegraphed it.”

Markets seemed to be in a more upbeat mood even before Powell’s testimony on Wednesday, as investors analyzed private payrolls in the US, which rose by 534,000 in November, According to the ADP’s National Employment Report on Wednesday. Economists whose forecasts were polled by the Wall Street Journal had forecast an increase of 506,000 private sector jobs in November.

The ADP results come ahead of the closely watched November payroll data due out on Friday.

Comments from Moderna also precipitated Tuesday’s downturn
mRNA,
-11.87%

CEO Stephan Bancel, who expressed skepticism about existing vaccines against the omicron variant, which the World Health Organization on Friday classified as a variant of concern because they fear it may be more transmissible and difficult to immunize against due to mutations in the so-called spike protein.

is reading: ‘Don’t panic’: Omicron is bound to disrupt supply chains. The question is, how bad would it be?

Analysts said investors will remain laser-focused on updates on the omicron variant, with data expected over the next two weeks or so.

“While Powell has decided to retire the temporary phrase when discussing inflation, the reality is that this latter alternative risks ensuring that this current hawkish tone is itself somewhat temporary in nature,” said Joshua Mahoney, IG’s chief market analyst. Note to customers.

“With the risk of future shutdowns and economic shutdowns, comments from the Fed and [Bank of England] It should be taken with a pinch of salt given how much could change once the full extent of this alternative is discovered,” Mahony said.

It is said that the United States To announce more travel restrictions this weekAmong them is the requirement that all air travelers be tested for COVID within one day of their flight. Details are being finalized ahead of a planned speech from President Joe Biden on Thursday, in which he is expected to detail the country’s plan to control the pandemic this winter.

In other economic data, there is a closely watched indicator US manufacturers rose to 61.1 in November from 60.8 the previous month, the Institute for Supply Management said Wednesday. That matched expectations of economists polled by the Wall Street Journal. Any number above 50 indicates growth. A separate reading from IHS Markit showed that the US manufacturing PMI for November fell to 58.4 from the initial 59.1.

Meanwhile, the Fed’s latest Beige Book compilation released on Wednesday showed that while the economy was growing at a moderate pace in November, companies were raising prices at a rapid clip across a range of the economy.

The survey found that “prices rose at a moderate to strong pace, with prices rising broadly across sectors of the economy.”

What companies are focused on?
  • Groupon Inc. GRPN Shares fell 3.3 per cent after it announced on Wednesday that it had appointed Zappos veteran Kedar Deshpande as the company’s next CEO. Deshpande has spent the past decade at Zappos in a variety of roles, including as CEO. shares

  • shares GlobalFoundries
    GFS,
    -4.30%

    After the semiconductor manufacturer, benefiting from an ongoing global chip shortage, reported a 56% jump in third-quarter revenue. The company’s shares closed down 4.3%.

  • The ETF focuses on airlines, The US Global JETS ETF
    Planes ,
    -4.48%
    And
    The market ended 4.5% lower, led by losses in American Airlines Group
    AAL,
    -7.97%
    And
    United Airlines Holdings
    UAL,
    -7.57%

    And Delta Airlines Inc.
    from,
    -7.38%

How are other assets traded?
  • gold futures contracts
    GC00,
    + 0.37%

    for February delivery
    GCG22,
    + 0.37%

    rose 0.4% to end at $1,784.30 an ounce.

  • January WTI Crude CLF22 It fell 61 cents, or 0.9%, to settle at $65.57 a barrel on the New York Mercantile Exchange, after touching an intraday high of $69.49. Prices lost 5.4% on Tuesday.

  • ICE . US Dollar Index
    DXY,
    + 0.05%
    And
    The measure of the currency against six other monetary units was flat at 96.002.

  • The yield on 10-year Treasury bonds
    TMUBMUSD10Y,
    1.407%

    About 1.433%, compared to 1.440% on Tuesday at 3 p.m. ET. Treasurys prices fall as yields rise.

  • Stokes Europe 600
    xxxp,
    + 1.71%

    Closed 1.7% higher and the FTSE 100 index in London
    UKX,
    + 1.55%

    It rose 1.6%.

  • In Asia, the Shanghai boat
    SHCOMP,
    + 0.36%

    The Hang Seng Index is up 0.3%.
    HSI,
    + 0.78%

    Gain 0.7% and Japan’s Nikkei 225
    I,
    + 0.41%

    It rose 0.4%.

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