Wall Street collapses amid fears of new COVID fan closures

US stock futures fell on Friday, as global markets were shaken by a new variant of the Corona virus discovered in South Africa, which raised fears of possible new restrictions on growth.

Volumes were lower due to the Thanksgiving holiday in the US, which could contribute to volatility. However, key benchmarks pointed to a rough opening in the brief post-Thanksgiving session on Wall Street. Dow futures contractsYM = F.(It is down 800 points, or 2.5%, while S&P 500 futures are down)ES = F.(and Nasdaq)NQ = F.) It also fell sharply.

a A new type of corona virus has been discovered in South Africa, which led to an emergency session of the World Health Organization. The scientists say the new B.1.1.529 strain is concerning, because it contains a large number of mutations found in other variants – including a rapidly spreading delta variant that has exploded during most of the summer – and appears to spread rapidly.

Although there is no evidence yet, health officials are concerned that the mutated variant could impair or counteract the effectiveness of vaccines.

“It goes without saying that it is still too early to quantify the extent of the threat that the new strain of B.1.1.529 poses to the global economy,” said Neil Schering, chief group economist at Capital Economics, in a note.

However, the lesson from the past two years is that it is the restrictions imposed in response to the virus – not the virus itself – that are causing the bulk of the economic damage. So, the key question is how governments will respond if the B.1.1.529 strain spreads,” Sherling wrote.

“This in turn will depend on how much it escapes with vaccines and, more importantly, is causing a strain in national health care systems” – he added, stressing that governments in the US and UK have taken a “learning to live with the virus” approach and are therefore much less likely than Other regions to impose new restrictions.

Oil prices also fell, with US crude futures down 6.2% to $73.57 a barrel on perceived fears of lower demand amid the new alternative. Bond yields also declined as inflation fears in the market temporarily gave way to a desire for safe haven assets. The yield on the 10-year US Treasury fell to 1.53% after closing at 1.63% on Wednesday.

There are no major economic releases scheduled for Friday. The stock market will close at 1 PM ET on Friday due to the weekend.

7:55AM ET Friday: Stock futures falter

Here’s where the markets are trading on Friday morning:

  • S&P 500 futures contractsES = F.): 4623.25, -75.75 (-1.61%)

  • Dow futures contractsYM = F.): 34973.00, -776.00 (-2.17%)

  • Nasdaq futures contractsNQ = F.): 16,224.50, -141.50 (-0.86%)

NEW YORK, NY - SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City.  In the afternoon, the Dow was down more than 250 points as investors remained concerned about inflation, wages and supply chain issues.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NY – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In the afternoon, the Dow was down more than 250 points as investors remained concerned about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)

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