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[뉴욕=뉴스핌] Correspondent Kim Min-jung = Major indexes rose on the 29th (local time) in the New York Stock Exchange. Last weekend, the New York Stock Exchange, which panicked over the fear of the COVID-19 omicron mutation, reversed the previous trading day’s decline as an assessment of anxiety was hasty.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 236.00 points (0.68%) to 35,135.94, and the S&P 500 index, which focuses on large-cap stocks, rose 60.65 points (1.32%) to 4655.27. recorded
The Nasdaq Composite Index, centered on technology stocks, finished trading at 15,782.83, up 291.18 points (1.88%).
Investors have been watching the spread of Omicron mutations. While not much is known about the mutation of Omicron, which is already known to have landed in the Americas through Canada, the fact that pharmaceutical companies are responding quickly gave investors a moment of relief.
Moderna (MRNA) expected to release a vaccine to counter the new mutation early next year, and Pfizer (PFE) appeased the market by revealing that a treatment for COVID-19 would be effective against the omicron mutation. Shares of Moderna soared 11.80% on the day.
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After U.S. President Joe Biden said there is no need to take immediate lockdown measures due to mutations in the Omicron, the S&P 500 rose to an intraday high of 4672.95.
Investors started buying stocks on the perception that last week’s decline was excessive and the impact on the stock market if Omicron could be controlled would not be significant.
In particular, the energy sector, which showed a sharp weakness last weekend, showed strength. On the same day, West Texas Intermediate (WTI) January futures closed at $69.95 per barrel, up $1.80 (2.6%) from the battlefield, supporting energy-related stocks. Chevron (CVX) and ExxonMobil (XOM) rose 0.30% and 0.52%, respectively.
“Investors seem to see Omicron not having any adverse effects and the vaccine will still be effective than they feared last Friday,” said Pawad Rajakzada, an analyst at ThinkMarket. It will take at least two to three weeks, and volatility will increase during this period.”
Pershing Square founder Bill Ackman tweeted that if the symptoms of the Omicron mutation were not severe, stock could be bullish.
“We advise against making hasty changes to our investment strategy and recommend continuing to invest,” said Mark Happele, strategist at UBS Wealth Management in the report.
Jean Bobbin, head of BlackRock Investments Institute, also said in a report that favorable conditions for equity investment will continue. The mutation only delays the reopening and does not significantly change the conditions of the stock.”
Some experts expected that if Omicron materially affects the macroeconomic outlook, the Federal Reserve will not scale up its asset purchase cuts and delay the timing of rate hikes.
Thomas Hayes, managing member of Great Hill Capital, told Reuters: “If microns become a big problem, it will be bigger than the delta spread we’ve experienced. will be,” he analyzed.
Shares of rental car company Hertz Global Holdings (HTZ) rose 5.99% after announcing plans to buy $2 billion of common stock.
Twitter (TWTR) rose 2.78% after rising news of CEO Jack Dorsey’s immediate resignation.
Tech stocks were strong. Apple (APPL) rose 2.19% and Amazon.com (AMZN) rose 1.63%, respectively. Google’s parent company Alphabet (GOOGL) and Metaplatform (FB) also finished trading up 2.35% and 1.47%.
Meanwhile, market volatility has subsided. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), called the ‘Wall Street fear index’, fell by 20.37% to 22.79.