Wall Street closes lower because Omicron fuels volatility Financial Market News

The U.S. Centers for Disease Control and Prevention said Wednesday afternoon that the country had detected the first case of the Omicron coronavirus variant.

Wall Street closed lower on Wednesday morning after blurring as investors became concerned about the latest variant of coronavirus and the first evidence reaching the United States while Federal Reserve Chairman Jerome Powell was digesting comments about rising inflation.

Preliminary data show that the S&P 500 – a proxy for the health of retirees and university savings accounts – lost 1.18 percent to 4,513.04 points, while the Nasdaq Composite Index lost 1.83 percent to 15,254.05. The Dow Jones Industrial Average fell 1.34 percent to 34,022.04.

Later, the U.S. Centers for Disease Control and Prevention said the country had detected the first case of the Omicron variant, which infected a person from South Africa, where the variant was initially found.

Earlier on Wednesday, Fed Powell said policymakers should be prepared to respond to the possibility of inflation not reversing as expected in the second half of next year.

Wall Street fell on Tuesday after Powell shocked the market by announcing at a December meeting that the central bank would consider accelerating the withdrawal of its bond-buying program amid rising inflation.

“The market is struggling with the double concerns of the Omicron variant, whether it can be able to prevent the vaccine, and with a blacker Powell than expected,” said Chris Zaccarelli, chief investment officer of Charlotte’s Independent Advisor Alliance. Carolina.

Wall Street fell sharply when it learned of the Omicron variant on Friday, and health officials said they do not yet know how contagious or dangerous the variant is and how much vaccines there can protect against it.

On Monday, the market bounced back sharply as investors sought after-sale bargains, while Powell’s comments fell again on Tuesday.

“We tried to buy the depot again [on Wednesday] but the news that Omicron is already here has taken away some of the wind from the sails of the bulls, ”Zaccarelli said.

11 While all major S&P sectors were winning early in the afternoon, most sectors were negative towards the end of the session. The communications services sector was the biggest loser throughout the evening.

Salesforce.com Inc. forecasts current quarterly earnings below estimates in the face of fierce competition from internal rivals Microsoft, significantly lowering its shares.

The World Health Organization said it hoped to have more information on the transmissibility of the Omicron variant in the coming days, and that the agency believes that the COVID-19 vaccine will work against the variant.

Lauren Goodwin, an 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 about Omicron and recent Fed signals.

However, Goodwin also noted positive economic data on Wednesday, “reminding investors that the economic and corporate background of this market is really strong.”