All leading indicators were up about one percent at the open, but after the trading day, the mood deteriorated dramatically. By closing time, all leading indicators had turned lower. While the decline in the Nasdaq began a little earlier in the day, both the S&P 500 and the Dow Jones ended down more than one percent in the final minutes before closing time:
- The broad S&P 500 index closed down 1.18 percent.
- And Nasdaq, the owner of heavy technology, closed 1.83 percent lower.
- The Dow Jones Industrial Average fell 1.34 percent.
It’s been a rollercoaster week in global stock markets after the discovery of the new omicron variant of the coronavirus in South Africa on Friday last week. On Tuesday, all three of Wall Street’s leading indexes closed significantly lower after a small comeback at the start of the week.
The decline on Wall Street on Tuesday accelerated further after Central Bank Governor Jerome Powell indicated in a speech to the US Senate that the much-discussed scaling back of support purchases may begin earlier than was first announced.
Powell also acknowledged in the session the existence of the risks of high inflation or hyperinflation. Throughout the pandemic, the central bank governor has been aware that the Federal Reserve has considered rapidly rising inflation temporary.
The first case of Omicron in the United States
Just before 20:00, it was reported that the first case of the omicron variant of the coronavirus had been detected in the United States, and more specifically in the state of California on the Pacific coast.
The US Centers for Disease Control and Prevention (CDCP) confirms the case.
– The person in question is the one who returned from South Africa on November 22, the agency said.
The fully vaccinated person has had slight symptoms and is improving, and is in self-isolation since the positive test. The statement also stated that all close contacts were contacted and their results were negative.
The variant is thought to be more contagious than other coronary variants, but so far there is much that is uncertain about the virus variant. The United States has imposed entry restrictions on a number of countries in South Africa.
President Joe Biden said in a speech Monday that the Omicron alternative is a cause for concern, not panic. He added that he does not envision new closures or more travel restrictions at the present time.
After the news that Omicron’s first case was confirmed in the US, a number of tourism sector stocks fell. American Airlines, Delta Air Lines and United Airlines all fell more than five percent, according to CNBC.
The former Norwegian shipping company, Norwegian Cruise Line Holdings, also fell five percent.
In addition, the US software company, which develops the CRM system, Salesforce fell significantly on Wednesday. At the time of closing, the stock was down 11.74 percent.
The decline comes after the company reported lower revenue guidance in the fourth quarter. At the same time, higher than expected turnover and profits were recorded.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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