US stocks fell in yet another volatile session as traders assessed the latest developments on the omicron variant of the coronavirus. Indices have posted their largest drops in 2 months.
Apparently, massive sell-offs occurred immediately after the Centers for Disease Control and Prevention (CDCP) reported the first case of the new Covid omicron variant in the United states. South Africa said Covid-19 cases have nearly doubled since Tuesday as the new strain emerged in the UK, Switzerland and Brazil. Meanwhile, the World Health Organization (WHO) noted that existing vaccines could still provide some protection against the strain.
In terms of inflation, Fed Chairman Jerome Powell said the central bank would keep it in check, which is why officials should now consider how quickly they should taper stimulus. Investors stuck to their buying methods because of it, expending $ 2.22 billion in the market. This brought net purchases over the past week to $ 7.36 billion. Retail traders, on the other hand, preferred to buy up ETFs, index tracking and large-cap tech companies.
At the same time, confidence among CEOs of large US companies jumped to all-time highs as expectations for hiring, capex and sales improved. Manufacturing numbers also rose in November, while anecdotal evidence suggests employers continued to cut close to a record number of job openings.
Other important events for this week are:
- retail sales data in Australia (Thursday);
- OPEC meeting on oil production (Thursday);
- data on US jobless claims (Thursday);
- report on US employment, production orders and durable goods (Friday).
