U.S. stocks fell ahead of Federal Reserve Chairman Jerome Powell’s testimony and amid growing concerns over the omicron variant.
The Dow Jones Industrial average fell more than 200 points or 0.6% while the S&P 500 and Nasdaq Composite slipped 0.5% and 0.1%.
Powell is about to tell Congress on Tuesday that the variante omicron could threaten the US labor market and darken the inflation forecast.
OMICRON COVID-19 VARIANT: HERE’S WHAT WE KNOW
“The recent increase in COVID-19 cases and the emergence of the [omicron] variant present downside risks to use and economic activity and increased uncertainty for inflation, ”Powell wrote in prepared remarks that he will pronounce before the senatorial banking commission.
|Me: DJI||MEDIUM DOW JONES||34860.96||-274.98||-0,78 %|
|SP500||S&P 500||4635.28||-19,99||-0,43 %|
|I:COMP||NASDAQ COMPOSITE INDEX||15786.725656||+3.89||+0.02%|
Shares are reversing from Monday’s rebound as investors hunted for bargains after last Friday’s sell-off.
|MRNA||MODERN, INC.||368.51||+38.88||+11,80 %|
|JNJ||JOHNSON & JOHNSON||159,75||+0,55||+0.35%|
|RAIN||REGENERON PHARMACEUTICALS, INC.||654.40||+11.05||+1,72%|
In stocks, vaccine manufacturers remain in the foreground. The CEO of Moderna, in an interview with the Financial Times, said that current COVID-19 vaccines will likely be much less effective against the new omicron variant.
Additionally, Regeneron’s shares fell after the disclosure of its COVID cocktail which may be less effective against the variant. And Pfizer told FOX Business:
“Pfizer and BioNTech remain vigilant and constantly conduct surveillance efforts focused on monitoring emerging variants that potentially escape the protection of our vaccine. We are beginning to perform neutralization tests on the new omicron variant of concern and expect to have initial data in the coming weeks. . “
|WBA||WALGREENS BOOT ALLIANCE, INC.||46.08||+0.18||+0.39%|
In the news, Walgreens Boots Alliance has agreed to buy the remaining 30% of the German health unit from McKesson Corporation, GEHE Pharma Handel (GEHE) and Alliance Healthcare Deutschland (AHD).
And Adobe’s latest Cyber Monday stats were updated on Tuesday and shoppers spent $ 10.7 billion, down 1.4% from the same period a year ago. .
|AMZN||AMAZON.COM, INC.||3 561,57||+57.01||+1,63 %|
|TGT||TARGET CORP.||249.16||+2.59||+1,05 %|
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On the economic calendar:
The S&P CoreLogic Case-Shiller showed that the 20-city index jumped 1.0% in September, lagging behind the 1.2% increase in August and below the Refinitiv estimate of 1, 2%. However, year-over-year gains remained robust, increasing 19.1%, the fourth largest jump on record.
Later, at 9:45 a.m., the Institute for Supply Management released its Chicago Purchasing Managers Index for November. The closely watched gauge of Midwest trade activity is expected to dip slightly to 67.0 after an unexpected increase to 68.4 in October as supply shortages continue to hamper growth.
At 10 a.m. ET, the Conference Board will release its Consumer Confidence Index for November. It is expected to drop slightly to 110.9 after a surprise increase to 113.8 in October. Confidence is down sharply from a post-pandemic high of 128.9 in June due to inflation and concerns over COVID variants.
The French CAC 40 lost 1.4% at the beginning of the session to 6,684.44, while the German DAX lost 1.1% to 15,105.99. The British FTSE 100 lost 1.2% to 7,024.58.
Singapore led the losses in Asia, losing 2.5%, while South Korea’s Kospi lost 2.4% to 2,839.01. Japan’s Nikkei 225 benchmark closed 1.6% lower at 27,821.76, as pessimism about the omicron variant set in. The Australian S & P / ASX 200 gained 0.2% to 7,256.00. The Hong Kong Hang Seng fell 1.6% to 23,475.26, while the Shanghai Composite was almost flat at 3,563.89.