New York: Stocks on wall Street Their recent losses on Monday added to the string of losses amid concerns about financial markets joining a worldwide recession. omicron Differently, inflation and other forces will affect the economy.
The S&P 500 fell 1.1% for its third straight decline. The decline came after similar declines across Europe and Asia. Shares of oil producers helped ease after the price of US crude fell 3.7% on concerns that the latest coronavirus version could prompt factories, airplanes and drivers to burn less fuel.
Omicron may be the most feared force attacking the markets, but it’s not the only one. A proposed $2 trillion spending program by the US government dealt a potential death blow over the weekend when an influential senator said he could not support it. Markets are still absorbing last week’s significant move by the Federal Reserve to more quickly remove aid being thrown at the economy by rising inflation.
All of those benchmarks combined to pull the S&P 500 down 52.62 points to 4,568.02. The Dow Jones Industrial Average fell 433.28 points, or 1.2%, to end at 34,932.16. The Nasdaq Composite fell 188.74 points, or 1.2%, to 14,980.94.
Shares of the smaller company outperformed the rest of the market. The Russell 2000 Index fell 34.06 points, or 1.6%, to 2,139.87. In global markets, Germany’s DAX fell 1.9% and Japan’s Nikkei 225 fell 2.1%.
“Omicron threatens to become a Grinch to rob Christmas,” Mizuho Bank’s Vishnu Varthan said in a report. The market “prefers security to nasty surprises.”
With COVID-19 cases rising again, leaders of governments around the world are weighing the return of restrictions on businesses and social interactions at a time when many people seem sick from them.
The Dutch government on Sunday introduced a strict nationwide lockdown, while a UK official said on Monday it could not guarantee that new restrictions would not be announced this week. The Natural History Museum, one of London’s major attractions, said on Monday it was closing for a week due to a “lack of front-of-house staff”.
In the US, President Joe Biden will announce new steps he is taking on Tuesday, “issuing a dire warning about what winter will look like for Americans,” the White House press secretary said over the weekend. the press secretary said over the weekend. ,
Occidental Petroleum slipped 3.8%, leading to a long list of losing oil stocks. Raw material producers, technology companies and financial stocks also declined amid concerns over Omicron. Steelmaker Nucor dropped 5.8%, Microsoft dropped 1.2% and Synchrony Financial, which offers store-brand credit cards and other financial products, dropped 5.2%.
Cruise line operators got a boost after Carnival gave optimistic forecasts for 2022, despite growing concerns about the recent rise in COVID cases around the world. Carnival rose 3.4% for the biggest gains in the S&P 500, while Royal Caribbean rose 0.3% and Norwegian Cruise Line 2%.
The ultimate impact of Omicron on the economy is unclear. Besides weakening it by imposing restrictions on businesses, there is another fear that it could push inflation even higher. If it shuts down at ports, factories and other key points of the long global supply chain for customers, already entrenched operations could worsen.
Such troubles helped drive prices at the consumer level in November to 6.8 per cent from a year ago, the fastest inflation in nearly four decades.
But some economists argue that Omicron could have the opposite effect: If the variant leads to lockdowns or scares consumers to stay home, economic activity could slow, and with it, rising demand that has fueled supply chains. and raised consumer prices
“There has been a lot of demand that has been satisfied and I think consumers are becoming more price-conscious,” said Christopher Harvey, head of equity strategy at Wells Fargo Securities.
The worst-case scenario would be that the economy would collapse without providing relief from the already underlying inflation.
“The fast-spreading Omicron variant is likely to cause a temporary winter,” economists Lydia Boussour and Gregory Dako Oxford Economics wrote in a research report last week. They say the Federal Reserve may be faced with a “delicate” task of figuring out how to deal with an economic slowdown that coincides with high inflation.
The yield on the two-year Treasury fell to 0.63% from 0.66% late Friday. It’s a sharp turnaround from its strong growth in recent months, built on expectations that the Fed may begin raising short-term interest rates in 2022 to tame inflation.
The yield on the 10-year Treasury rose to 1.42% from 1.40% late Friday.
Given higher inflation lasting longer than expected, the Fed last week targeted an earlier end to its program to buy billions of dollars worth of bonds each month, meant to keep long-term interest rates low. Several of its members also said they expect the Fed to raise short-term rates, a move that would be three times more impressive in 2022.
Ultralow rates engineered by central banks around the world have been one of the major reasons for what has been a mostly gilded year for investors.
The S&P 500 is up more than 21% this year, with relatively little price volatility. Almost every time the shares dropped a bit, bargain-hunters came in to push prices back to record lows.
It’s been one of the best years of the last century american stock According to Goldman Sachs, when it comes to returns adjusted for risk. And the S&P 500 is still within 3.5% of its record set on Friday.
The S&P 500 fell 1.1% for its third straight decline. The decline came after similar declines across Europe and Asia. Shares of oil producers helped ease after the price of US crude fell 3.7% on concerns that the latest coronavirus version could prompt factories, airplanes and drivers to burn less fuel.
Omicron may be the most feared force attacking the markets, but it’s not the only one. A proposed $2 trillion spending program by the US government dealt a potential death blow over the weekend when an influential senator said he could not support it. Markets are still absorbing last week’s significant move by the Federal Reserve to more quickly remove aid being thrown at the economy by rising inflation.
All of those benchmarks combined to pull the S&P 500 down 52.62 points to 4,568.02. The Dow Jones Industrial Average fell 433.28 points, or 1.2%, to end at 34,932.16. The Nasdaq Composite fell 188.74 points, or 1.2%, to 14,980.94.
Shares of the smaller company outperformed the rest of the market. The Russell 2000 Index fell 34.06 points, or 1.6%, to 2,139.87. In global markets, Germany’s DAX fell 1.9% and Japan’s Nikkei 225 fell 2.1%.
“Omicron threatens to become a Grinch to rob Christmas,” Mizuho Bank’s Vishnu Varthan said in a report. The market “prefers security to nasty surprises.”
With COVID-19 cases rising again, leaders of governments around the world are weighing the return of restrictions on businesses and social interactions at a time when many people seem sick from them.
The Dutch government on Sunday introduced a strict nationwide lockdown, while a UK official said on Monday it could not guarantee that new restrictions would not be announced this week. The Natural History Museum, one of London’s major attractions, said on Monday it was closing for a week due to a “lack of front-of-house staff”.
In the US, President Joe Biden will announce new steps he is taking on Tuesday, “issuing a dire warning about what winter will look like for Americans,” the White House press secretary said over the weekend. the press secretary said over the weekend. ,
Occidental Petroleum slipped 3.8%, leading to a long list of losing oil stocks. Raw material producers, technology companies and financial stocks also declined amid concerns over Omicron. Steelmaker Nucor dropped 5.8%, Microsoft dropped 1.2% and Synchrony Financial, which offers store-brand credit cards and other financial products, dropped 5.2%.
Cruise line operators got a boost after Carnival gave optimistic forecasts for 2022, despite growing concerns about the recent rise in COVID cases around the world. Carnival rose 3.4% for the biggest gains in the S&P 500, while Royal Caribbean rose 0.3% and Norwegian Cruise Line 2%.
The ultimate impact of Omicron on the economy is unclear. Besides weakening it by imposing restrictions on businesses, there is another fear that it could push inflation even higher. If it shuts down at ports, factories and other key points of the long global supply chain for customers, already entrenched operations could worsen.
Such troubles helped drive prices at the consumer level in November to 6.8 per cent from a year ago, the fastest inflation in nearly four decades.
But some economists argue that Omicron could have the opposite effect: If the variant leads to lockdowns or scares consumers to stay home, economic activity could slow, and with it, rising demand that has fueled supply chains. and raised consumer prices
“There has been a lot of demand that has been satisfied and I think consumers are becoming more price-conscious,” said Christopher Harvey, head of equity strategy at Wells Fargo Securities.
The worst-case scenario would be that the economy would collapse without providing relief from the already underlying inflation.
“The fast-spreading Omicron variant is likely to cause a temporary winter,” economists Lydia Boussour and Gregory Dako Oxford Economics wrote in a research report last week. They say the Federal Reserve may be faced with a “delicate” task of figuring out how to deal with an economic slowdown that coincides with high inflation.
The yield on the two-year Treasury fell to 0.63% from 0.66% late Friday. It’s a sharp turnaround from its strong growth in recent months, built on expectations that the Fed may begin raising short-term interest rates in 2022 to tame inflation.
The yield on the 10-year Treasury rose to 1.42% from 1.40% late Friday.
Given higher inflation lasting longer than expected, the Fed last week targeted an earlier end to its program to buy billions of dollars worth of bonds each month, meant to keep long-term interest rates low. Several of its members also said they expect the Fed to raise short-term rates, a move that would be three times more impressive in 2022.
Ultralow rates engineered by central banks around the world have been one of the major reasons for what has been a mostly gilded year for investors.
The S&P 500 is up more than 21% this year, with relatively little price volatility. Almost every time the shares dropped a bit, bargain-hunters came in to push prices back to record lows.
It’s been one of the best years of the last century american stock According to Goldman Sachs, when it comes to returns adjusted for risk. And the S&P 500 is still within 3.5% of its record set on Friday.
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