Stock futures drop again as Moderna CEO predicts existing vaccines will be less effective against omicron variant – .

Stock futures drop again as Moderna CEO predicts existing vaccines will be less effective against omicron variant – .

U.S. equity futures tumbled again on Tuesday after Moderna CEO Stéphane Bancel predicted current vaccines would be less effective against the new omicron variant of COVID.

How are stock index futures traded?
  • S&P 500 ES00 futures contracts,
    fell 0.8% to 4,610
  • Dow Jones Industrial Average Futures YM00,
    fell 402 points, or 1.1%, to 34,672
  • Nasdaq-100 NQ00 Futures Contracts,
    fell 0.5% to 16,315

Monday, the industrialist Dow DJIA,
+0,68 %
finished up 236.60 points, or 0.7%, to 35,135.94, the biggest day-to-day point gain in a month and a daily percentage gain since Oct. 15, according to Dow Jones Market Data . The S&P 500 SPX index,
+1,32 %
rose 1.3%, or 60.65 points to 4,655 for its biggest gain in points and percentage since Oct. 14.

Le Nasdaq Composite COMP,
+1,88 %

climbed 291.18 points, or 1.9% more to 15,782.83, its best gain since May 14.

What drives the markets?

Just as markets seemed to be finding their way after the worst session in over a year on Friday, negative comments from vaccine maker Moderna’s MNA,
+11,80 %
CEOs on the prospects for vaccines against the new omicron variant put them back on shaky ground.

“There are no people, I think, where [the effectiveness] is the same level… that we had with delta, ”Bancel told the Financial Times in an interview published Tuesday morning. He said scientists he spoke to expected a “material drop” in the effectiveness of current omicron vaccines.

Bancel cited the much higher number of mutations on the spike protein of the omicron variant and the speed at which it is currently spreading across Africa as reasons. He predicted that vaccine makers would need several months to mass produce an effective vaccine against omicron.

“Its tone contrasts with the likes of Pfizer PFE,
and BioNTech BNTX,
who suggested that any new vaccine could be changed fairly quickly. His rather blunt comments also saw oil prices fall sharply, as an increasingly nervous market reacts with concern to the prospect of further restrictions and falling demand, ”said Michael Hewson, chief analyst of markets at CMC Markets.

Bancel’s comments come a day after President Joe Biden said omicron was concerning, but no reason to panic, and that tackling it would not involve “stops or lockdowns.”

Echoing Friday’s liquidation, crude prices fell CL00,

2.7% to $ 68.06 per barrel, as investors sought refuge in GC00 gold,
+0,47 %,
the Japanese yen USDJPY,
and government bonds, with the yield on the 10-year Treasury bill TMUBMUSD10Y,
down 6 basis points to 1.4715%.

“As we look into the rest of the week, this morning’s market decline shows sentiment is likely to remain extremely volatile until we have a clearer idea of ​​what to come next with regard to the new variant.” , Hewson said.


Please enter your comment!
Please enter your name here