Wall Street fear of Omikron consequences: US stock exchanges start in the red

Wall Street fear of Omikron consequences: US stock exchanges start in the red

Wall Street fear of Omikron consequences: US stock exchanges start in the red
Further restrictions are imminent due to the omicron variant of the corona virus.  Source: Reuters

The fear of a damper on the global economy due to the rapid spread of the Corona variant Omikron has the US stock exchanges firmly under control again. The Dow Jones index of standard stocks and the broader S&P 500 opened 1.3 percent lower at 34,910 and 4,561 points at the start of the week. The index of the technology exchange Nasdaq fell 1.5 percent to 14,942 points.

In several European countries there are again the threat of massive restrictions due to the increasing number of infections worldwide. . “Usually what happens in Europe is kind of a preview of what we’ll see in the United States,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. There is a threat of high stress on hospitals and a decreasing willingness to spend money. “This is definitely a cause for concern.”

Risk appetite also weighed on a looming setback for US President Joe Biden’s $ 1.75 trillion investment law. US Senator Joe Manchin, a moderate Democrat, said over the weekend that he would not support the stimulus package. Goldman Sachs, meanwhile, lowered its forecast for gross domestic product for the first quarter of 2022.

Especially shares in the travel industry got under the wheels on Monday. The titles of fell by up to four percent. The shares in the cruise company Royal Caribbean also fell by almost four percent at the top. At least 48 people tested positive for the corona virus on the world’s largest cruise ship operated by the shipping company.

In contrast, investors in the US cinema operators AMC Entertainment and Cinemark took hold of after the new Spider-Man film “No Way Home” made one of the strongest debuts in Hollywood history over the weekend in the USA and Canada, despite the new Corona variant .

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According to a study, the Covid vaccine from Moderna is still effective against the rapidly spreading omicron variant after three doses. A booster dose of the vaccine is therefore the first defense in the fight against Omikron, announced the US biotech company on Monday. Modern stocks rise 0.8 percent to open on Wall Street.

The EU Medicines Agency (EMA) has cleared the way for the approval of the corona vaccine from the US manufacturer Novavax. The EMA announced on Monday in Amsterdam. After approval by the EU Commission, this will be the fifth corona vaccine in the EU. The shares of the pharmaceutical company initially rose by almost eight percent at their peak, but shortly afterwards they are about two percent in the red.

The mining company’s title slipped almost five percent after the left-wing former student leader Gabriel Boric in Chile, the new head of state wants to create a state-owned lithium company. So far, the business with this raw material required for electric car batteries has been dominated by Albemarle, among others. The exchange-traded iShares fund (ETF) on Chilean companies, also listed on Wall Street, crashed by almost eight percent.

The company announced plans to cut the price of its Alzheimer’s drug Aduhelm by half. The aim is to make it easier for patients to access treatment. Biogen stocks are trading at the previous day’s level at $ 217.16.