Earlier gains on the stock exchanges in New York have evaporated at the close on Wednesday. During the trading session, concerns grew over the Omikron variant of the coronavirus discovered in southern Africa, which may be more contagious than the dominant Delta variant. The United States reported the first confirmed corona infection with the variant within its own national borders. In South Africa, the number of positive corona tests doubled compared to Tuesday.
Shortly after the opening bell, optimism prevailed. The World Health Organization (WHO) said existing corona vaccines likely protect against the new variant. The CEO of BioNTech, which developed one of the vaccines together with Pfizer, had a message to the same effect.
Airlines, among others, were dealt a new blow to the stock market by the American Omikron case. Delta Air Lines lost more than 7 percent and United Airlines lost 7.6 percent. Hotel group Hilton Worldwide fell almost 4 percent and competitor Marriott International was down 3.4 percent.
The most important indicators fell during a stormy share price. The broad-based S&P 500 ended up closing 1.2 percent below Tuesday’s close at 4,513.04 points. Earlier in the day, the index was still at almost 2 percent gain. The Dow Jones Industrial Average lost 1.3 percent to 34,022.04 points and tech Nasdaq ended 1.8 percent lower at 15,254.05 points.
Major oil companies Exxon Mobil and Chevron also lost their previous profits after oil prices fell again. A barrel of US oil lost 1.7 percent to $65.11. Brent oil lost 1.3 percent to $68.31.
In addition to the news about the Omikron variant, comments from Federal Reserve Chairman Jerome Powell also played a part. He reiterated before a House committee that the central bank’s stimulus measures are likely to be phased out more quickly than previously anticipated. This is because of the rising inflation.
Salesforce lost nearly 13 percent. The software company made more profit than expected last quarter, but expectations for the current quarter were disappointing. Hewlett Packard Enterprise further lost about 1 percent after disappointing revenue from the IT services provider. Auto group GM released a more positive outlook for profit this year. The stock closed 0.3 percent higher.
The euro was worth 1.1314 dollars, against 1.1323 at the close of the European stock exchanges.
New worries about Omikron push New York stocks into the red
Source link New worries about Omikron push New York stocks into the red