Wall St ends lower as taper acceleration worries pile onto virus angst

FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City

By Devik Jain, Ambar Warrick and Sinéad Carew

(Reuters) – Wall Street's main indexes closed lower on Tuesday after Federal Reserve Chair Jerome Powell signaled that the U.S. central bank would consider speeding up its withdrawal of bond purchases as inflation risks increase, piling pressure onto a market already nervous about the latest COVID-19 variant.

In a testimony before the Senate Banking Committee, Powell indicated that he no longer considers high inflation as “transitory” and that the Fed would revisit the timeline for scaling back its bond buying program at its next meeting in two weeks.

“Powell's comments threw a monkey in the wrench in market thinking in terms of potential taper timing. You're seeing as a result of that, risk-off across the board,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

“You also have to factor in the Omicron variant concerns. You can argue whether they're more headline risk or reality risk but regardless, it's having a significant impact on oil, and everything that's tied to economic growth.”

Powell's comments also prompted speculation among some investors about a potential acceleration in interest rate hikes.

“The principal contributor to the decline in stock prices today is the Powell commentary, regarding the upcoming Fed meeting, about accelerating the tapering of their bond buying program, which obviously leads to the prospect that rate hikes come sooner next year,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

“That somewhat hawkish shift in tone caught the market flatfooted,” Luschini said.

Meanwhile, the market was also left waiting for information about how dangerous the Omicron variant might be, the degree to which current vaccinations could offer protection and the additional restrictions governments might have to impose that could hurt the economy, Luschini said.

According to preliminary data, the S&P 500 lost 87.25 points, or 1.87%, to end at 4,568.02 points, while the Nasdaq Composite lost 239.43 points, or 1.52%, to 15,543.40. The Dow Jones Industrial Average fell 648.13 points, or 1.84%, to 34,487.81.

The declines were broad-based, with all the 11 major S&P sectors down. Communication services was the lead decliner by late afternoon. As oil prices tumbled energy were also under pressure throughout the session.

Tuesday's decline was a reversal after Monday's rally in which stocks regained some of the ground they had lost on Friday when the market first sold-off on news of the virus variant.

“The market is clearly in some treacherous waters right now. You've had two significant pullbacks out of the last three trading days. This is certainly shaking some of the complacent longs in the market,” said Wedbush's James.

While the Food and Drug Administration said it hopes to have information about the effectiveness of current COVID-19 vaccines against Omicron, vaccine companies appeared divided.

BioNTech's chief executive said the BioNTech and Pfizer COVID-19 vaccine will likely offer strong protection against severe disease from the variant, while Moderna Inc's CEO told the Financial Times that COVID-19 shots are unlikely to be as effective against the new variant as they have been previously.

Moderna shares fell while Regeneron Pharmaceuticals Inc were also under pressure after it said its COVID-19 antibody treatment and other similar drugs could be less effective against Omicron.

Travel and leisure stocks slumped, with S&P 1500 Airlines and the S&P 1500 Hotels, Restaurant and Leisure indexes both declining on concerns of more border restrictions.

The small-cap Russell 2000 index also fell.

The virus uncertainty has triggered fresh alarm at a time when supply chain logjams are weighing on economic recovery and central banks globally are contemplating a return to pre-pandemic monetary policy to tackle a surge in inflation.

Meanwhile, data showed U.S. consumer confidence slipped in November amid concerns about the rising cost of living and relentless COVID-19 pandemic.

(Reporting by Devik Jain and Ambar Warrick in Bengaluru; Editing by Marguerita Choy and Sriraj Kalluvila)

News Related

OTHER NEWS

One Cut Two Cut trailer out. Danish Sait pulls up quirky tricks to save children

Danish Sait’s One Cut Two Cut trailer was unveiled on January 27. Danish Sait, who was last seen in Humble Politiciann Nograj, is back with another satirical comedy titled One ... Read more »

Rare Mideast snow brings Jerusalem joy, misery for Syria refugees

Snow carpeted Jerusalem and the eastern Mediterranean Thursday as a rare storm turned the holy city into a winter wonderland but brought misery to the region’s Syrian refugees. © Menahem ... Read more »

Kumkum Bhagya, 27th January 2022, Written Update: Ranbir hugs Prachi

© Provided by Pinkvilla In today’s episode, When Pallavi trips and gets hurt because of Rhea, Ranbir holds her. Ranbir, Pallavi, and Dida are eliminated from the game. Only Rhea, ... Read more »

Air India handover to Tatas: Confident airline will bloom under new owners, says Scindia

© Provided by The Financial Express Tata Sons Chairman N Chandrasekaran, Civil Aviation Secretary Rajiv Bansal and Air India Chairman and Managing Director Vikram Dev Dutt were among those who ... Read more »

‘Will repeat 1971 history when CM lost from Gorakhpur': Bhim Army chief Chandra Shekhar Aazad on contesting against Yogi Adityanath

© Provided by The Financial Express He also rejected allegations of being a vote cutter and cleared the air about his fallout with the Akhilesh Yadav-led party. (File) Undaunted by ... Read more »

Julius Babao to anchor Frontline PH on TV5

VETERAN broadcast journalist Julius Babao has confirmed his move to TV5. In a post on his Facebook and Instagram accounts, Babao confirmed he will be anchoring TV5’s flagship news bulletin ... Read more »

Marcoleta raises lack of transparency in NTC granting frequencies to other media firms

House Deputy Speaker Rodante Marcoleta, one of the lawmakers who was instrumental in denying the franchise of ABS-CBN, raised concern over the move of the National Telecommunications Commission to give ... Read more »

Villar shares rally after securing ABS-CBN frequencies

MANILA, Philippines — Shares of Villar-owned listed companies rallied yesterday after the National Telecommunications Commission announced that it had awarded the frequencies of ABS-CBN to Advanced Media Broadcasting System (AMBS). ... Read more »

Southwest Airlines reports first quarterly profit in two years

CHICAGO (Reuters) – Southwest Airlines Co on Thursday reported its first quarterly profit, without U.S. government aid, in two years on the back of strong holiday travel demand. © Reuters/MIKE ... Read more »

Indian ride-hailing app Ola to open £100m electric car facility in Coventry

© Provided by The Guardian Photograph: Manjunath Kiran/AFP/Getty Images Indian tech company Ola has announced plans to invest £100m in the UK to open a research and development facility for ... Read more »

Northrop sales fall 15% as supply chain snarls restrict deliveries

By Mike Stone and Nathan Gomes © Reuters/Mike Blake A Northrop Grumman building is shown in El Segundo, California (Reuters) – U.S. weapons maker Northrop Grumman Corp posted a 15% ... Read more »

‘Kluster mahkamah' modal lawan serang Umno, BN, kata Zahid

© Provided by Free Malaysia Today Ahmad Zahid Hamidi berkata dakwaan konon beliau berusaha mengembalikan kerajaan Umno/BN disebabkan kes mahkamah menjadi satu-satunya propaganda politik pihak lawan. PETALING JAYA: Presiden Umno ... Read more »

Are batteries in electric cars recyclable?

© Provided by Motoring Electric Can electric car batteries be recycled By 2026, electric cars will account for a fifth of all registrations in the UK. That’s according to forecasts ... Read more »

Teenager held after two Jewish men attacked in north London

© Victoria Jones Police were calledto the scene in Cadoxton Avenue, Haringey, after receiving reports that two men had been assaulted (PA) A teenager has been arrested after two Jewish ... Read more »

Paracetamol and ibuprofen in short supply after Omicron surge

© PA Archive Paracetamol change reduces deaths Shoppers have been struggling to get hold of paracetamol from many supermarkets while beer shelves are overflowing, as the impact of Omicron continues ... Read more »

This is the best chance Tory leadership hopefuls have of deposing Boris Johnson, but they know it's risky

Boris Johnson is still standing his ground. He won’t quit because he has to “knowingly” have misled Parliament in order for the convention of resignation to apply.   What do ... Read more »

Amazon Echo Show 5 tumbles in price this January – up to 40% off

AMAZON gadgets and gizmos are in high demand, all year round. So shoppers will be pleased to learn the 2nd-generation Echo Show 5 is on sale on Amazon, both in ... Read more »

BRITs host Mo Gilligan: ‘I want to use my platform to shine a light on others‘

The BRITs host Mo Gilligan has said he wants to use his platform to “shine a light on others”. Earlier this month the stand-up comedian, 33, announced he was donating ... Read more »

Kobe Bryant and daughter Gianna memorialised in statue at fatal helicopter crash site

The late Kobe Bryant and his daughter Gianna have been memorialised with a bronze statue on the second anniversary of their death. The statue was placed at the Los Angeles ... Read more »

Biden must honor his commitment to appoint a Black woman to the Supreme Court

Having a Black woman on the Supreme Court is about far more than sending a powerful message on representation and inclusion. It's about justice. Read more »

Londoner's Diary: Farewell to Barry Cryer, master of quickfire gags

THE LONDONER is very sad to learn of the death of Barry Cryer, announced this morning. He was a frequent presence in these pages. Just a few years ago at ... Read more »

Buzzy beauty brand Glossier just laid off more than 80 employees

© Provided by Business Insider Staff at a Glossier store. Jonathan Wiggs/The Boston Globe via Getty Images Beauty brand Glossier just laid off more than 80 corporate employees.  CEO Emily ... Read more »

NICD: South Africans need not panic about new Omicron sub-variant

NICD notes this is a sub-variant of the Omicron variant called BA.2 sublineage NICD’s Dr Bhiman says it is very similar to the original Omicron variant and is no cause ... Read more »

Video: 'My story is for the millions who cannot talk': Holocaust survivor and TikTok star Lily Ebert, 98, says the people who tattooed her at Auschwitz were 'not human' and that the world needs to know how 'deep' evil can go 

Read more »

Everton move forward with Frank Lampard talks amid fan protest against potential Vitor Pereira appointment

© Getty Images frank lampard Frank Lampard is due to hold further talks with Everton on Thursday after his hopes of becoming their manager were boosted by a fan protest ... Read more »

Stephen Fry leads tributes to comedian Barry Cryer

© Provided by Cover Media Stephen Fry Stephen Fry has led tributes to “glorious” comedy star Barry Cryer. A representative announced on Thursday that Cryer, who was known for writing ... Read more »

‘Beautiful' junior paramedic, 21, was killed when her ambulance smashed into back of cement truck, inquest hears

A 'BEAUTIFUL' junior paramedic was killed when her ambulance smashed into the back of a cement truck after driving into a slip road rather than a turning, an inquest heard. ... Read more »

Saudi Arabia addresses track layout concerns for 2022 F1 race

The Jeddah circuit delivered a spectacular event last year, but a number of drivers expressed safety concerns about the high-speed last section of the street track. The biggest worry was ... Read more »

Australian Open LIVE: Danielle Collins vs Iga Swiatek tennis result after Ash Barty defeats Madison Keys

LIVE – Updated at 11:51 Follow live updates from the Australian Open women’s semi-finals after world number one Ashleigh Barty defeated Madison Keys 6-1 6-3 to book a place in ... Read more »

Pläne von Renault-Nissan-Mitsubishi: 35 neue E-Autos bis 2030

Investitionen von 23 Milliarden Euro. Neue Plattformen sollen E-Autos günstiger machen. © Renault Die Allianz von Renault, Nissan und Mitsubishi hat die Roadmap für die Elektrifizierung bis 2030 ausgerollt. Dafür ... Read more »

"I've heard people on the inside": Craig Hope drops big NUFC claim that'll excite fans - opinion

© Provided by Football FanCast Lyon midfielder Bruno Guimaraes battles Rangers’ Kemar Roofe Newcastle United appear to be closing in on the signing of Lyon midfielder Bruno Guimaraes amid a ... Read more »

Barry Cryer dead at 86 – Cause of death not revealed as veteran comedian & writer for The Two Ronnies passes away

THE MUCH-LOVED British comedian, actor, and writer Barry Cryer has passed away at the age of 86, as heartfelt tributes have poured in for him. His heartbroken family said: “He ... Read more »

‘No-brainer of a deal', ‘Finally' – These Hull City fans react to first signing of Acun Ilicali era

© Provided by Football League World League One – Hull City v Wigan Athletic New Hull City owner Acun Ilicali has made his first transfer move since taking over the ... Read more »

Barry Cryer, comedian and writer who was the cornerstone of the hit radio show I'm Sorry I Haven't a Clue for half a century – obituary

© ITV/Shutterstock Barry Cryer in 1971 – ITV/Shutterstock Barry Cryer, who has died aged 86, was one of Britain’s most talented comedy scriptwriters, a calling he successfully matched with appearances ... Read more »

Gesundheitskosten gestiegen: Krankenkassen warnen vor Prämienerhöhung

Der Krankenkassen-Dachverband Santésuisse warnt vor Prämienerhöhungen wegen gestiegener Kosten bei der Grundversicherung. Am meisten dazu beigetragen haben die Ausgaben für Physiotherapie, für den ambulanten Arzt- und Spitalbereich und für die ... Read more »

Kardinal Marx entschuldigt sich nach Missbrauchsgutachten

© Keystone/dpa-Pool/Sven Hoppe Als Reaktion auf das erschütternde Missbrauchsgutachten im Erzbistum München und Freising hat Kardinal Reinhard Marx Betroffene wie Gläubige erneut um Entschuldigung gebeten und eine Erneuerung der Kirche ... Read more »

Soccer-Torino sign Monaco striker Pellegri after Milan terminate loan

© Reuters/ERIC GAILLARD FILE PHOTO: Ligue 1 – AS Monaco v Angers ROME (Reuters) – Torino have signed striker Pietro Pellegri from Monaco on loan with the option to buy, ... Read more »

Paper Talk: Manchester United & Liverpool could be set to hijack Luis Diaz to Spurs!

© GiveMeSport p1fqdkrr311qtubp01qkf14n0rljb.jpg Tottenham’s rejected £37million bid for Luis Diaz has put Liverpool and Manchester United on high alert. Check out the lastest from Terry Flewers on The Football Terrace ... Read more »

Shweta Tiwari refers to God while speaking about her bra & lands in trouble; MP minister to take action

© Provided by Pinkvilla Shweta Tiwari is one of the biggest names in the Television industry. The actress often makes it to the headlines for her fashion game, her fitness ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic