New York: wall StreetKey averages fell more than 1% on Wednesday following morning rally as investors worried about the latest coronavirus tally with the first US case confirmed, while markets also digested Fed comments on inflation .
After rising as much as 1.9% by late morning, the S&P 500 gave up all of its gains in the afternoon with the Dow and Nasdaq falling the most that day. All three indices broke key technical levels during the session.
Of late, the US Centers for Disease Control said the country had detected its first case of the Omicron variant, which had infected a man from South Africa, where the variant was initially discovered.
Earlier on Wednesday, the Federal Reserve Chair Jerome Powell It said policy makers need to be prepared to respond to the possibility that inflation may not moderate as expected in the second half of next year.
Wall Street had already fallen on Tuesday when Powell stunned the market by indicating that the central bank would consider accelerating the withdrawal of its bond buying program at its December meeting amid rising inflation.
“The market is grappling with the twin concerns of the Omicron variant, which may or may not be able to survive the vaccine, and the more hawkish Powell than expected,” said Chris Zacarelli, chief investment officer at the Independent Advisor Alliance in Charlotte, North Carolina. ” ,
Wall Street fell sharply on Friday when investors first heard about the Omicron version with health officials unsure how permeable or dangerous the version is and how much protection existing vaccines provide.
On Monday, the market jumped sharply as investors looked for bargains after the sell-off, only to fall again on Tuesday after Powell’s comments.
“We tried to buy the dip again (Wednesday), but the news of Omicron’s arrival took some of the wind out of the oxen,” Zaccarelli said.
NS Dow Jones The industrial average fell 461.68 points, or 1.34%, to 34,022.04, the S&P 500 fell 53.96 points, or 1.18%, to 4,513.04 and the Nasdaq Composite fell 283.64 points, or 1.83%, to 15,254.05.
The Dow closed below its 200-day moving average for the first time since July 13, 2020, while the S&P closed below its 50-day moving average for the first time since October 13, and the Nasdaq closed below its 50-day moving average. session ended. For the first time since October 14.
While all 11 major S&P sectors were gaining in the afternoon, all ended the day with the exception of one sector. The communication services sector was the biggest loser with a decline of 1.99% and consumer discretionary was not far behind, with a decline of 1.86%.
The only advance sector was utilities, a more defensive sector that attracts interest as investors are fleeing from risky bets. The next best performers of the day were also defensive sectors, with healthcare falling 0.2% and consumer staples falling 0.4%.
The CBOE market volatility index, often referred to as Wall Street’s fear gauge, closed 14.5 points higher at 31.12, having earlier risen to 32.61, its highest level since February.
The financially sensitive Russell 2000 Index of Small Cap Companies showed a near full face, closing down 2.3% after rising as much as 2.5% at its morning peak.
The World Health Organization said it expected to have more information about the transmissibility of the Omron variant within a few days, and the agency believed existing COVID-19 vaccines would work against the variant.
Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said it was not surprising to see volatility as investors digest uncertainties, including a lack of information on Omicron and the Fed’s latest signals.
However, Goodwin also pointed to Wednesday’s positive economic data, which was “reminding investors that the economic and corporate backdrop for this market is indeed strong.”
US manufacturing activity picked up in November amid strong demand for goods.
Salesforce.com Inc. reported lower-than-estimated current quarter profit as it faces stiff competition from rivals including Microsoft, sending its shares down 11.7%.
The decline of issues leading to a 2.26-to-1 ratio on the NYSE; On the Nasdaq, a 2.96-to-1 ratio favored the decline.
The S&P 500 posted 13 new 52-week highs and 42 new lows; The Nasdaq Composite posted 37 new highs and 541 new lows.
Trading volumes were up as 14.2 billion shares changed hands on US exchanges compared to the 11.3 billion average in the previous 20 sessions.
After rising as much as 1.9% by late morning, the S&P 500 gave up all of its gains in the afternoon with the Dow and Nasdaq falling the most that day. All three indices broke key technical levels during the session.
Of late, the US Centers for Disease Control said the country had detected its first case of the Omicron variant, which had infected a man from South Africa, where the variant was initially discovered.
Earlier on Wednesday, the Federal Reserve Chair Jerome Powell It said policy makers need to be prepared to respond to the possibility that inflation may not moderate as expected in the second half of next year.
Wall Street had already fallen on Tuesday when Powell stunned the market by indicating that the central bank would consider accelerating the withdrawal of its bond buying program at its December meeting amid rising inflation.
“The market is grappling with the twin concerns of the Omicron variant, which may or may not be able to survive the vaccine, and the more hawkish Powell than expected,” said Chris Zacarelli, chief investment officer at the Independent Advisor Alliance in Charlotte, North Carolina. ” ,
Wall Street fell sharply on Friday when investors first heard about the Omicron version with health officials unsure how permeable or dangerous the version is and how much protection existing vaccines provide.
On Monday, the market jumped sharply as investors looked for bargains after the sell-off, only to fall again on Tuesday after Powell’s comments.
“We tried to buy the dip again (Wednesday), but the news of Omicron’s arrival took some of the wind out of the oxen,” Zaccarelli said.
NS Dow Jones The industrial average fell 461.68 points, or 1.34%, to 34,022.04, the S&P 500 fell 53.96 points, or 1.18%, to 4,513.04 and the Nasdaq Composite fell 283.64 points, or 1.83%, to 15,254.05.
The Dow closed below its 200-day moving average for the first time since July 13, 2020, while the S&P closed below its 50-day moving average for the first time since October 13, and the Nasdaq closed below its 50-day moving average. session ended. For the first time since October 14.
While all 11 major S&P sectors were gaining in the afternoon, all ended the day with the exception of one sector. The communication services sector was the biggest loser with a decline of 1.99% and consumer discretionary was not far behind, with a decline of 1.86%.
The only advance sector was utilities, a more defensive sector that attracts interest as investors are fleeing from risky bets. The next best performers of the day were also defensive sectors, with healthcare falling 0.2% and consumer staples falling 0.4%.
The CBOE market volatility index, often referred to as Wall Street’s fear gauge, closed 14.5 points higher at 31.12, having earlier risen to 32.61, its highest level since February.
The financially sensitive Russell 2000 Index of Small Cap Companies showed a near full face, closing down 2.3% after rising as much as 2.5% at its morning peak.
The World Health Organization said it expected to have more information about the transmissibility of the Omron variant within a few days, and the agency believed existing COVID-19 vaccines would work against the variant.
Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said it was not surprising to see volatility as investors digest uncertainties, including a lack of information on Omicron and the Fed’s latest signals.
However, Goodwin also pointed to Wednesday’s positive economic data, which was “reminding investors that the economic and corporate backdrop for this market is indeed strong.”
US manufacturing activity picked up in November amid strong demand for goods.
Salesforce.com Inc. reported lower-than-estimated current quarter profit as it faces stiff competition from rivals including Microsoft, sending its shares down 11.7%.
The decline of issues leading to a 2.26-to-1 ratio on the NYSE; On the Nasdaq, a 2.96-to-1 ratio favored the decline.
The S&P 500 posted 13 new 52-week highs and 42 new lows; The Nasdaq Composite posted 37 new highs and 541 new lows.
Trading volumes were up as 14.2 billion shares changed hands on US exchanges compared to the 11.3 billion average in the previous 20 sessions.
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