Wall Street falls into Omicron’s concerns prior to the Fed’s meeting

Prior to the Federal Reserve Board later this week, US stocks fell on Monday for fear of a variant of the Omicron coronavirus, but investors saw Apple approaching $ 3 trillion in market capitalization.

Seven of the 11 major S & P 500 sector indexes fell, and only defense stocks such as consumer staple foods, utilities and real estate rose.

Travel-related strains declined as rapidly expanding Omicron mutants accounted for about 40% of COVID-19 infections in London and at least one person died in the United Kingdom.

Carnival Corporation’s share price fell nearly 6.9%, leading the decline in cruise operators, while the S & P 1500 airline index fell 4.6%.

“The big unknown is still a variant of Omicron, and we still don’t know how it will affect markets and the economy, but as long as that uncertainty exists, volatility will probably remain high,” says Charles Schwab. Trading and derivatives.

The CBOE Market Volatility Index, an indicator of investor anxiety, surged 2.2 points in the afternoon trading.

Apple Inc.’s share price fell 1.1%, reversing the rise after JP Morgan raised its iPhone maker’s share price target to its highest on Wall Street. We were ready to become the world’s first company to achieve a market value of $ 3 trillion.

“When you see big companies like (Apple) doing well, it basically means that people are focusing on quality. It’s very profitable and has cash flow. Very strong big companies are often considered really safe havens, “says Frederick.

The Federal Reserve’s decision-making is still a top event for the market, and there is growing bet that the US central bank will suggest a faster taper of asset purchases and an early start to raise interest rates.

“Everyone is focusing on this week’s Fed and what guidance they get on bond purchases and interest rates. We expect the taper to accelerate, and we’re a little worried about that,” said Jacob Internet Fund. Ryan Jacob, Chief Portfolio Manager, said.

According to a Reuters economist survey, the central bank raised its key interest rate from near zero to 0.25% -0.50% in the third quarter of next year, followed by another in the fourth quarter.

The S & P 500 Index hit a record high on Friday with the latest information on vaccines and antibody cocktails to combat the new COVID-19 mutant and recent measurements of inflation in line with consensus.

At 11:47 am on the ET, the Dow Jones Industrial Average fell 293.85 points (0.82%) at 35,677.14, the S & P 500 fell 34.99 points (0.74%) at 4,677.03, and the Nasdaq Composite Index fell 185.51 points (1.19). Did. Percentage, 15,445.09.

Pfizer Inc. rose 5.3% as it agreed to acquire Arena Pharmaceuticals in a $ 6.7 billion full cash transaction. Arena stocks surged 83.3 percent.

The number of issues to be reduced was 2.65: 1 in NYSE and 2.98: 1 in Nasdaq, surpassing the starting lineup.

The S & P index recorded 38 new 52-week highs and 4 new lows, and Nasdaq recorded 28 new highs and 237 new lows.

By Shreyashi Sanial and Bansari Mayur Kamdar