New York Stock Market: Dow Jones Industrial Average Drops 652.22 Points On Fed QE Ending Fears

The Dow Jones Industrial Average closed more than 600 points overnight after Federal Reserve Chairman Jerome Powell signaled an early end to his quantitative easing (QE) bond-buying program. The market has also been under pressure with a Moderna executive warning that Currently available vaccines are less effective at protecting against COVID-19. Omicron species

The Dow Jones Industrial Average closed at 34,483.72, down 652.22, or -1.86%, the S&P500 closed at 4,567.00, down 88.27, or -1.90%, and the Nasdaq closed at 15,537.69, down 245.14, or -1.55%.

The New York Stock Exchange fell immediately after Powell told the Senate Banking Committee last night that: The Fed may cut the amount on the QE program by more than $15 billion a month. The Fed will discuss it at its monetary policy meeting on Dec 14-15.

“Right now the economy is very strong. and inflationary pressures have increased So I think the time is right for the Fed to consider ending its bond-buying program several months earlier. We will discuss it at the next meeting,” Powell said.

In addition, the market has also been under pressure from Stefan Banzel, Chief Executive Officer of Moderna said. Currently available vaccines are less effective at protecting against COVID-19. Omicron species with a warning that Pharmaceutical companies can take months to produce a new vaccine that will adequately protect against Omicron strains.

The technology and communications stock index fell the worst among 11 stocks calculated in the S&P500, down 3 percent. Twitter shares were down 3.96 percent. Meta Platforms (Facebook) Netflix was down 3.31%, Microsoft was down 1.79 percent, AT&T was down 4.40 percent, and Alphabet was down 2.5 percent.

Energy stocks fell 2.5 percent after WTI oil prices slid more than 5 percent overnight, with Exxon Mobil down 2.84 percent, Chevron down 1.72 percent and Conoco Phillips down 2.8. Halliburton shares fell 2.97%.

Hotel Group, Cruise Group and travel service business Shares of Hyatt Hotels Corporation were down 2 percent, Marriott International was down 2.13 percent and MGM Resorts was down 3.77 percent. Carnival Corp. fell 2.97 percent, Norwegian Cruise Line Holdings fell 3.5 percent, Expedia Group was down 3.25 percent, Booking Holdings was 3.67 percent.

Pharmaceutical stocks also fell. Moderna was down 4.36 percent, Biontech was down 2.97 percent, Abbott Laboratories was down 1.86 percent, Johnson & Johnson shares were down 2.39. % Regeneron shares Pharmaceuticals fell 2.73%.

For US economic data released last night, S&P CoreLogic Case Schiller released a survey that said. The nationwide home price index in the United States rose 19.5 percent in September year on year. But it’s below 19.8 percent in August and is the first time house prices have slowed year-on-year since May 2020.

A survey by the Conference Board, an economic research institute, showed its Consumer Confidence Index fell to 109.5 in November, below analysts’ expectations of 111.0 from 111.6 in October. The consumer confidence index was pressured by rising inflation. and the spread of COVID-19

Investors will keep an eye on the US release of non-farm payroll numbers for November on Friday. While analysts predicted that The number of jobs to increase by 581,000 in November. after adding 531,000 jobs in October