Economic News

Post-sell stock futures rally triggered by Omicron for the first time in the US

Post-sell stock futures rally triggered by Omicron for the first time in the US

U.S. stock index futures moved slightly higher in trading Wednesday night after the CDC confirmed the first known case of an Omicron variant in the United States, lowering the stock price. 4,444 contracts, which are tied with the Dow Jones Industrial Average, rose 72 points. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.25%. In normal trading, the Dow fell about 460 points, or 1.34%. At the beginning of the session, the 30 stock index was up 521 points, or 1.5%. The S&P fell 1.18% to recover from its previous gain of around 1.9%. The Nasdaq Composite fell 1.83% after gaining 1.8%.

Stocks fell from their morning highs after Fed Chairman Jerome Powell said he expects policymakers to discuss the possibility of a faster rate cut at a meeting this month. “As the economy is currently very strong and inflationary pressures are high, it is appropriate to consider halting the asset purchase cuts actually announced at the November meeting. A few months ago. “We look forward to discussing this at our next meeting,” he said in congressional testimony. However, sales accelerated as the CDC confirmed that the omicron mutation had arrived in the United States with the first confirmed cases in California. TD Securities In a message to its clients, “Investors are increasingly wary of the Omicron option and the potential for faster emission reductions.  Travel stocks have been particularly hard hit as investors fear that Omicron options could make travel requirements more stringent.” received. Cruise company, airline and hotel stocks closed the session in the red.

Wednesday’s sharp rise continues the volatile band for the stock as the market digests the meaning of new options. Ed Moya, chief market analyst at Oanda, said: “We’ve seen this movie before and it looks like Wall Street will remain in the headlines for COVID-19 until a clear assessment of this wave is made.” “Over the next few weeks, risk appetite will be heightened by additional Omicron upgrades, supply chain issues and all inflation indicators.” In terms of data, the weekly initial unemployment claims data is released Thursday at 8:30 AM EST. Dow Jones estimates that economists expect print sales to reach 240,000 copies. According to previous readings, 199,000 people applied for registration for the first time, the lowest since November 1969. The November vacancy report is published on Friday.

Thursday’s figures follow Wednesday’s more unexpected ADP report. Private sector jobs rose 534,000 in November, beating expectations of 506,000.Although most third-quarter earnings seasons are over, a few companies are still posting quarterly earnings. Dollar General, Kroger and Signet Jewelers will report on Thursday ahead of the opening.