This week ushered in the last week of 2021. Investors continued to measure the threat posed by the Omicron virus to the economy. US stocks opened up on Monday (27th). After closing at a record high last week, the S&P 500 index reached a new high today. Before the deadline, the Dow Jones Industrial Average rose more than a hundred points or 0.3%, the Nasdaq Composite Index rose 0.55%, the S&P 500 Index rose 0.51%, and the Philadelphia Semiconductor Index rose more than 1.1%.
Even though some studies or reports point out that compared with previous COVID-19 variants, Omicron has a milder impact and a lower risk of hospitalization. However, as the number of confirmed cases in the United States and Australia has soared, there are still many airlines due to the epidemic. Or shortage of manpower, cancellation of flights during the holidays.
The White House medical consultant Anthony Fauci also believes that Omicron should be cautious. Although there is evidence that the symptoms caused by the Omicron variant may be mild, the surge in confirmed diagnoses may still cause a serious burden on the medical system.
Affected by Omicron, aviation stocks opened tumbling. Before the deadline, United Airlines (UAL-US) was down 3.8%, American Airlines (AAL-US) was 3.7%, Southwest Airlines (LUV-US) was down 2.5%, and Delta Airlines (DAL-US) was down 3.1%; Carnival (CCL-US) and Royal Caribbean Cruises (RCL-US), which had confirmed cases, dropped 4.5% and 3.6% respectively.
Before the press deadline, the 10-year U.S. Treasury yield fell to 1.488%, and the rebound in the US dollar led to a decline in gold prices. However, concerns about Omicron stimulated safe-haven demand, and gold prices were still hovering at a 1-week high.
As of Monday (27th) 22:00, Taipei time:
- The Dow Jones Industrial Average rose 117.36 points, or 0.33%, to 3,0667.92 points temporarily
- The Nasdaq Composite Index rose 86.74 points, or 0.55%, to 15739.96 points temporarily
- The S&P 500 Index rose 23.97 points, or 0.51%, temporarily at 4,749.76
- Fees rose by 44.97 points, or 1.14%, temporarily at 3,977.91 points
- TSMC’s ADR rose 1.58% to $122.59 per share
- The 10-year U.S. Treasury yield fell to 1.488%
- New York Light Crude Oil fell 0.33% to US$73.55 per barrel
- Brent crude oil fell 0.21% to US$76.69 per barrel
- Gold fell 0.08% to US$1810.20 per ounce
- The dollar index rose to 96.15
GoDaddy (GDDY-US) rose 6.79% in early trading to $81.16.
The Wall Street Journal quoted people familiar with the matter as reporting that the radical hedge fund Starboard Value bought a 6.5% stake in the Internet service provider GoDaddy at a price of approximately US$800 million. It was reported that the former was intended to improve the performance of the latter’s company.
Didi (DIDI-US) fell 1.61% in early trading to US$5.51.
The Financial Times reported that Didi intends to extend the lock-up period for shareholders originally scheduled to expire on the 27th indefinitely. The affected groups include current and former employees of Didi, although external investors such as Uber, SoftBank, and Tencent can still sell on Monday. Stocks, but they may face losses.
Modena (MRNA-US) fell 2.56% in early trading to $243.60.
Some shareholders of Modena believe that the company’s vaccine prices are too high and that vaccine technology should be shared with low- and middle-income countries to promote vaccine equality. This proposal was immediately opposed by Modena. The company is expected to release the vaccine before February 15. Information about pricing.
Today’s key economic data:
- At 23:30, Taipei time, the US December Dallas Fed Manufacturing Index was announced, expected to be 13, and the previous value was 11.8
Wall Street analysis:
Charalambos Pissouros, head of research at JFD, said that last week the market laid the foundation for this week’s Christmas market (Santa Rally). Low volume, coupled with ordinary news, usually push asset prices to the path of least resistance.
In terms of the epidemic, Pissouros believes that most countries will not tighten epidemic prevention measures this week to avoid breaking the Christmas holiday, but it may be postponed until early next year. Taking this into account, coupled with the fact that the central bank is subject to inflation, there is no margin. Adding more stimulus measures does not rule out that the stock market will face more blows by the end of next year.
Jeffrey Halley, senior market analyst at Oanda, said that although the market has digested the news that Omicron is less toxic, the disruption to the supply of goods and services caused by the shortage of manpower is still the main factor affecting the market, especially the aviation industry. It is believed that this will only have a short-term impact, and the global economic recovery next year is still on track.