(New York = Yonhap News) Yonhap News Correspondent Yoon Young-sook = The New York Stock Exchange showed mixed results, watching the new coronavirus infection (COVID-19) mutant ‘Omicron’.
As of 10:06 am eastern time on the 30th (US time), the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) recorded 34,931.89, down 204.05 points (0.58%) from the previous field.
The Standard & Poor’s (S&P) 500 index fell 12.12 points (0.26%) to 4,643.15, and the Nasdaq index, centered on technology stocks, recorded 15,819.39, up 36.56 points (0.23%) from the battlefield.
Investors are watching the Omicron mutation, Federal Reserve Chairman Jerome Powell’s hearings, and 10-year Treasury yield movements.
Investor sentiment worsened after Moderna CEO Stefan Bansel remarked that “existing vaccines may not work well with Omicron.” As a result, Asian and European stock markets were under pressure.
“It is unlikely that existing vaccines against the omicron mutation will be as effective as the delta mutation,” Bansel said in an interview with the Financial Times.
In an earlier interview with CNBC, Bancel CEO said that it could take several months to develop and deliver a vaccine against Omicron.
There is also news that US pharmaceutical company Regeneron has released preliminary results saying that its COVID-19 antibody treatment is not effective against Omicron. Regeneron’s antibody treatment is known to have been used by former US President Donald Trump when he was infected with COVID-19.
Shares of Moderna are down more than 7% on the day, while Pfizer shares are up about 1.5%.
Travel stocks were weak.
Shares of both Expedia and Norwegian Cruises fell more than 2%, while shares of American Airlines fell about 2.5%. On the other hand, shares of Netflix and Tesla are up more than 1%.
The 10-year Treasury bond yield fell by 6 basis points to 1.43%. An increase in bond yields means an increase in prices. As Treasury yields fall, the Nasdaq is seeking a rebound.
Federal Reserve Chairman Jerome Powell said the omicron mutation could pose a threat to the US economy.
“The recent rise in COVID-19 cases and the emergence of micron mutations pose downside risks to employment and economic activity, and increase uncertainty about inflation,” Powell said in a response to the Senate Banking Committee meeting scheduled for the day.
The spread of omicron mutations could make the Fed’s policy more difficult. In particular, if concerns about an economic slowdown grow, expectations of the Fed’s tightening will likely decrease.
U.S. home price growth slowed for the first time since May 2020.
The seasonally-adjusted September National Home Price Index, compiled by S&P CoreLogic Case-Shiller, rose 19.5% annually. This is a drop from 19.8% in July and August, the highest since data collection began in 1987.
Home prices in the United States continued to rise for 14 consecutive months, then stopped rising in August, and the rate of growth slowed for the first time since May 2020 in September.
The housing price index in 20 cities rose 19.1% annually, down from 19.6% in the previous month. The figure fell below the 19.3% expected by experts compiled by the Wall Street Journal (WSJ), and the growth rate slowed for the second straight month.
New York stock market experts say investors are focusing on news from Omicron.
Jim Paulson, investment strategist at the Reutthold Group, said, “The stock market is focusing on the news flow linked to Omicron. “The market is shaken by the news from Moderna that a new vaccine is needed this year, and it could take months to develop,” he said.
European stocks also fell.
Germany’s DAX index fell 0.38%, and the UK FTSE100 index fell 0.38%. The pan-European STOXX600 index is down 0.35%.
International oil prices fell sharply again.
The price of West Texas Intermediate (WTI) crude for January was down 3.37% from the battlefield at $67.59 a barrel. Brent crude for January was down 3.44% to $70.96 a barrel.
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2021/12/01 00:12 Send