Futures Plunge on New Omicron Fears After Vaccine Warning | WSAU News / Talk 550 AM · 99.9 FM

By Devik Jain and Ambar Warrick

(Reuters) – U.S. stock index futures fell sharply on Tuesday after a warning from the chief executive of vaccine maker Moderna about the effectiveness of COVID-19 shots on the Omicron variant had affected the travel, energy and banking stocks.

Global stock markets tumbled after Stéphane Bancel also told the Financial Times that it was likely the current vaccine case would need to be revised.

Adding to the concerns, Regeneron Pharmaceuticals Inc said previous analyzes had shown its COVID-19 antibody drug may reduce activity against the Omicron variant.

Occidental Petroleum led the losers among energy stocks, falling 3.8% as oil prices fell more than 3% on worries about demand. [O/R]

Major Wall Street lenders fell more than 2%, tracking a decline in Treasury yields as safe-haven demand kept bond buying high. Bank of America Corp was the biggest loser among its peers, down 2.5%. [US/]

American Airlines Group fell the most among airline stocks, falling between 1.3% and 3.5%. Cruise operators Carnival Corp and Norwegian Cruise Line fell about 3.8% each.

Wall Street’s main indexes rallied on Monday from Friday’s deep sell-off, as investors hoped that the coronavirus variant Omicron would not lead to a close after being endorsed by US President Joe Biden reassured.

Uncertainty over the new variant has caused renewed alarm at a time when the log of supply chains is weighing heavily on the economic recovery and global central banks are contemplating a return to monetary policy. before the pandemic to address the rise in inflation.

At 6:11 a.m. ET, the Dow e-minis were down 458 points, or 1.31%, the S&P 500 e-minis were down 49.75 points, or 1.07%, and the Nasdaq 100 e-minis were down 89 points, equivalent to 0.54%.

Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell will testify before the US Senate Banking Committee at 10 a.m. EST (1500 GMT) to discuss the economic recovery from the pandemic. .

In his prepared testimony, Powell said he continued to expect inflation to fall next year, but warned that the new strain of COVID-19 would dent the outlook and that prices could continue to rise for longer than expected. what was thought before.

The focus will also be on the Chicago PMI readings and consumer confidence data later in the day.

Going against this trend, stay-at-home stocks that benefited the most during the close, such as Netflix Inc, Teladoc Health, Peloton Interactive, and Zoom Video Communications jumped between 0.5% and 2.2% .

(Reporting by Devik Jain and Ambar Warrick in Bengaluru; Editing by Sriraj Kalluvila) Futures Plunge on New Omicron Fears After Vaccine Warning | WSAU News / Talk 550 AM · 99.9 FM

Dais Johnston

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