NEW YORK (awp international) – The US stock exchanges recovered slightly on Monday from their heavy losses before the weekend. Investors are currently waiting primarily for new findings on the Coronavirus variant Omikron and have become a little more optimistic again. Because although Omikron could be more contagious than Delta, for example, it is still unclear whether this variant is also more dangerous and whether it will increase the number of hospitalizations and deaths. Experts from South Africa, where the first cases became public, have so far stated comparatively mild symptoms in patients who have become infected with it.
On Wall Street, the Dow Jones Industrial gained 0.21 percent in early trading to 34 973.10 points, with the opening gains largely crumbling. The market-wide S&P 500 rose 0.93 percent to 4637.26 points and on the Nasdaq, the selection index 100 advanced 1.51 percent to 16268.27 points. On Friday, both the Dow and the tech stocks index plummeted by more than two percent in shortened trading after the first reports about Omikron had made the rounds.
In a comment, market analyst Jochen Stanzl from CMC Markets pointed out that the reports on Omikron gave rise to new hopes that the US Federal Reserve could give in and reconsider the “tapering course” it recently embarked on – that is, the reduction in bond purchases. “Monetary policy is likely to give way if the new virus mutation poses a threat to the ongoing economic recovery and could prolong the pandemic,” wrote Stanzl.
The cautious optimism of investors was also supported by news from the vaccine industry, as the biotech company Moderna announced on Sunday that it could produce a large-scale vaccine specially tailored for Omikron early next year. Mainz’s competitor Biontech also announced that, in addition to ongoing laboratory tests to examine the new variant, it was also working on the development of an adapted vaccine – as a preventative measure in the event that it might become necessary.
Accordingly, Moderna shares continued their recovery rally. After a plus of more than 20 percent on Friday, they now gained another 8 percent and were thus the top value in the Nasdaq 100. The Biontech stocks listed in New York gained another 2.5 percent after their most recent increase of around 14 percent. However, both titles still have a long way to go to their record highs in August.
There was also relief among owners of oil stocks: After the weak end of the week, Chevron and ExxonMobil were each 1.0 percent more expensive, following the partial recovery in oil prices. ConocoPhillips gained 1.8 percent. Commodities expert Daniel Hynes of the Australia & New Zealand Banking Group had described the recent drop in prices for these stocks as a “complete overreaction” of the market.
In contrast, it continued to look rather bleak for stocks from the travel and leisure industry: The stocks of American Airlines, Delta and United or Southwest Airlines all fell further recently.
The share of Twitter made a price jump of 11 percent at times, with a plus of 3.4 percent they were then suspended from trading. The reason was media reports about the upcoming resignation of CEO Jack Dorsey. The reports have now been confirmed. / Ck / mis
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