Shares stem from Powell’s hawkish taper, Omicron alarm | Financial Markets News
Fed Chairman Jerome Powell has signed a new agreement with the United States Central Bank to reduce the number of bonds available to buy as the risk of inflation increases. These volatile markets are already affected by the impending threat of the Omicron COVID-19 brand.
Wall Street major indexes closed Tuesday after Federal Reserve chairman Jerome Powell signed a statement from the United States central bank that it would consider speeding up the reduction of bond purchases as the risk of rising prices rises, adding to pressure on the already feared and volatile COVID market. -19.
Testifying before the Senate Banking Committee, Powell indicated that he no longer saw inflation as “temporary” and that the Fed would also consider time to reduce its bond-buying program at the next two weeks.
The S&P 500 – retired health and college accounting project – lost 88.27 points, or 1.9 percent, to end at 4,567 points, while the tech-heavy Nasdaq Composite Index lost 245.14 points, or 1.55 percent, to 15,637. The Dow Jones Industrial Average fell by 652.11 points, or 1.86 percent, to 34,483.72.
“Powell’s words have thrown the monkey off the market in anticipation of a time when it could be cheap.
“You also have to explain the problems with Omicron. You can argue if they are at high risk or in real danger but, no matter what, it has a huge impact on oil, and everything related to economic growth.”
Powell’s comments also sparked speculation among investors about high interest rates.
“The biggest contributor to inflation today is Powell’s comment, referring to an upcoming Fed meeting, about rolling out their bond program, which raises hopes that inflation will come soon next year,” Mark said. Luschini, senior economist at Janney Montgomery Scott in Philadelphia.
“The variability of this tone affected the market,” Luschini said.
Meanwhile, the market was left to anticipate more information about how dangerous Omicron diversity could be, how modern coronavirus vaccines could protect and the restrictions that governments may need to put in place that would damage the economy, Luschini said.
Tuesday’s decline was a major one, with 11 major S&P shares falling. Communication services were the lowest in the evening. As oil prices fell, power returned to normal.
Monday’s meeting saw the stocks regain some of its losses on Friday as the market was first traded for a wide range of varieties of the virus.
While the U.S. Food and Drug Administration said it hoped to have information about how the COVID-19 vaccine works against Omicron, the vaccine industry appeared to be divided.
BioNTech CEO said BioNTech and Pfizer COVID-19 vaccines could provide strong protection against a wide range of serious illnesses, while Moderna Inc CEO told the Financial Times that the COVID-19 shot would not be effective against the new strain. it already exists.
Moderna shares fell while Regeneron Pharmaceuticals Inc was also under pressure after claiming that its anti-COVID-19 and other similar drugs may not be effective against Omicron.
Travel and accommodation are down, while S&P 1500 Airlines and S&P 1500 Hotels, Restaurant and Leisure are down on border restrictions.
The uncertainty of the virus has brought a new alarm at a time when online taxes are facing a financial crisis and central banks around the world are considering a return to pre-monetary policy to address rising inflation.
