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The leading indices all rose around one percent at the opening, but beyond the trading day, the mood soured considerably. By closing time, all the leading indices had turned to decline. While the decline on the Nasdaq started a little earlier in the day, both the S&P 500 Index and the Dow Jones ended up falling over one percent in the final closing minutes before closing time:
- The broad S&P 500 index ended down 1.18 percent.
- Technology-heavy Nasdaq ended down 1.83 percent.
- The Dow Jones industrial average fell 1.34 percent.
It has been a roller coaster-like week in the world’s stock markets after the new omicron variant of the coronavirus was discovered in South Africa on Friday last week. On Tuesday, all three leading indices on Wall Street ended markedly down after a small comeback at the beginning of the week.
The decline on Wall Street on Tuesday accelerated further after central bank governor Jerome Powell in a speech before the US Senate indicated that the downsizing of the much-discussed support purchases may start earlier than first communicated.
At the hearing, Powell also admitted that the risk of high inflation, or inflation, is present. Throughout the pandemic, the central bank governor has been aware that the Federal Reserve has regarded the rapidly rising inflation as temporary.
First omikron case in the United States
Just before 20:00, the news came that the first case of the omicron variant of the coronavirus had been discovered in the USA, more specifically in the state of California on the Pacific coast.
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The US Centers for Disease Control and Prevention (CDCP) confirms the case.
– The person in question is a person who returned from South Africa on November 22, the agency states.
– The person, who has been fully vaccinated, has mild symptoms and is improving, is self-isolating and has been since the positive test. All close contacts have been contacted and have tested negative, the statement further states.
The variant is believed to be more contagious than other corona variants, but so far there is much that is uncertain about the virus variant. The United States has imposed restrictions on entry from a number of countries in southern Africa.
The omicron variant is a cause for concern, not panic, said President Joe Biden in a speech on Monday. He added that he does not envisage new closures or more travel restrictions at this time.
Tourism hit
Following the news that the first omikron case had been confirmed in the US, a number of tourism stocks fell. Airlines American Airlines, Delta Air Lines and United Airlines all fell over five percent, reports CNBC.
The former Norwegian-owned shipping company, Norwegian Cruise Line Holdings, also fell five percent.
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In addition, the US software company, which develops CRM system, Salesforce dropped significantly on Wednesday. At closing time, the share was down 11.74 percent.
The decline comes after the company reported reduced guiding for revenue in the fourth quarter. At the same time, higher turnover and profit were reported than expected.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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