New coronavirus variant fears knock 2% off Dow futures -Breaking
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By Medha Singh
(Reuters) – U.S. stocks index futures plunged Friday with commodity, travel and bank-linked shares suffering the biggest losses. The discovery of a vaccine-resistant coronavirus variant scared investors before a short trading session.
In premarket trading, major airline operator stocks fell between 5% and 6 percent as South Africa’s new virus was discovered. This led to the European Union and Britain imposing stricter border control.
Carnival Corporation (NYSE) Corp. Royal Caribbean (NYSE:) Each cruise plunged around 9%.
Bank of America Corp. (NYSE:). Citigroup Inc (NYSE:), JPMorgan Chase & Co (NYSE:), Goldman Sachs (NYSE:), Wells Fargo (NYSE:) & Co and Morgan Stanley (NYSE: ) declined between 3% – 4% because traders reduced their previous bets regarding interest rate rises.
Stronger-than-anticipated U.S. inflation and expectations that Jerome Powell was the more hawkish choice for Fed chair had firmed bets that the central bank is likely to raise rates several times next year, knocking U.S. stocks off their record levels this week.
According to Ipek Ozkardeskaya (senior analyst at Swissquote), “Investors aren’t sure whether the equity markets could survive another economic hit without less support from central banks. As central banks would need to deal with a double fight that is intensifying on both the fronts of inflation rising and COVID news getting worrisome”,
The problem is they don’t have the same tools for fighting inflation or slowing down the economy. The choice is difficult.
CBOE volatility index, also known as Wall Street’s fear gauge or Wall Street’s fear gauge jumped to its highest since Sept 20.
5.45 AM. ET: Futures that track the small-cap domestically-focused index fell 4.4% on ET. This is its worst day since June 2020.
These were 2.3% down at 8.23 and 1.6% down at 87.5.
were down 196.5 points, or 1.2%, faring better in comparison as “stay-at-home-winners” such as Netflix Inc (NASDAQ:), Peloton Interactive (NASDAQ:) and Zoom Video Communications (NASDAQ:) The demand for this product, which experienced a dramatic increase during the COVID-19 lockdowns last year, rose between 1% to 9%.
Oil majors Exxon Mobil Corp (NYSE 🙂 Chevron As oil prices plummeted, Corp (NYSE: ) saw a drop of 6% and 5%, respectively. [O/R]
Some vaccine companies include Pfizer Inc (NYSE 🙂 and BioNTech Se (NASDAQ 🙂 are partners. Moderna (NASDAQ:) Inc climbed between 5% to 7%
Markets close at noon, so trading volume will likely be low. ET (the day after Thanksgiving).
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