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A new variant of the coronavirus. Falls on the stock exchanges in the US and Europe

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The stock exchanges in the United States and Europe ended Friday with strong falls. It was the worst day of 2021 for the Dow Jones Index. The reason for the panic is information about the rapid spread of a new variant of the coronavirus called omicron.

Analysts indicate that the new variant of the coronavirus was still on the periphery of investors’ interest on Thursday, and already on Friday the attention of the markets was already focused on it. All because it is highly contagious and possibly resistant to current vaccines as well.

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Big drops on the stock exchanges

As a result, a huge wave of risky asset sell-offs swept through the global markets, starting in Asia on Friday morning, throughout Europe during the day, and ending with a shortened session in the United States.

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The Friday session on Wall Street was cut short due to Black Friday, the traditional day of sale in stores in the United States.

Dow Jones Industrial closed by 900 points or 2.53 percent at the close to 34,899.34 points. The S&P 500 lost 2.27 percent at the end of the day. and amounted to 4594.62 points. Nasdaq Composite fell 2.23 percent. and closed the session at 15,491.66 points.

During the day, Dow Jones was losing more than 1000 points at one point.

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Investors’ reaction

Banks’ stocks fell on concerns about a slowdown in the global economy. Bank of America fell 5.3 percent and Citigroup fell 4.8 percent. Stocks of industrial companies also fell. Caterpillar lost 4.9 percent and Dow Inc. 3.8 percent Chevron lost 5.3 percent. following cheaper crude oil on world markets.

On the other hand, medical concerns producing vaccines benefited. Over 22 percent Moderna’s shares went up more than 5 percent. gained Pfizer. Equities of European retail companies, which are primarily focused on online trading, also appreciated slightly. Among the more expensive companies there are, among others Zalando and Ocado. Stocks of companies that gained during last year’s lockdown in the global economy also grew. Investors bought, among others shares of Zoom Video (increase by over 7%) and Peloton (increase by 4%).

10-year US Treasury yield by 12 basis points to 1.52% This is a big move considering that earlier this week bond yields jumped to 1.68%.

Main photo source: Shutterstock



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