Still, the WHO said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines. The World Health Organization labeled the omicron strain a " variant of concern" Friday, sending the Dow sliding 900 points to suffer its worst day since October 2020.Ĭovid symptoms linked to the omicron variant have been described as "extremely mild" by the South African doctor who first raised the alarm over the new strain. The new Covid variant, first detected in South Africa, has now been found in more than a dozen countries, causing many nations to restrict travel. Major averages rose to session highs Monday after President Joe Biden said economic lockdowns are currently off the table and there will be no new travel restrictions. The Dow lost 905 points Friday, then rebounded by 237 points Monday. Stocks' move lower follows a volatile last few sessions as investors evaluate the omicron impact. West Texas Intermediate (WTI) crude futures falling 5.4%, or $3.77, to $66.18 per barrel. Oil prices also declined on Tuesday with U.S. The benchmark yield was as high as 1.69% last week before Friday's drop below 1.5%. The 10-year rate lost 9 basis points to 1.44% (1 basis point equals 0.01%). The 10-year Treasury yield fell further below 1.45% as investors worried about the economy slowing because of the new variant. Bancel told CNBC on Monday that it could take months to develop and ship an omicron-specific vaccine. The CEO told the newspaper there could be a "material drop" in the current vaccines' effectiveness against this variant. Tuesday's reversal also came after Moderna CEO Stephane Bancel told the Financial Times that he expects existing vaccines to be less effective against the new variant.
Powell's comments suggest that the Fed's focus has now changed to fighting inflation and its negative impacts rather than any more potential disruptions in economic activity from new variants of Covid. "I expect that we will discuss that at our upcoming meeting." "At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases … perhaps a few months sooner," Powell said. In an appearance before a Senate committee, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month.
The small-cap benchmark Russell 2000 dropped 1.9% to 2,198.91 as economically sensitive names got hit hardest. The technology-heavy Nasdaq Composite dipped about 1.6% to 15,537.69. The Dow Jones Industrial Average dropped 652.22 points to 34,483.72, dragged down by losses in American Express and Salesforce.