Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

Dow drops 900 points as new Covid variant sparks market sell-off

by
November 26, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Small cap stocks could be setting up to be the big winners. Here’s how to play them

Hackers have stolen $1.4 billion this year using crypto bridges. Here’s why it’s happening

Johannes Eisele | AFP | Getty Images

U.S. stock dropped sharply on Friday as a new Covid variant found in South Africa triggered a global shift away from from risk assets.

The Dow Jones Industrial Average dropped 900 points, or 2.5%, while the S&P 500 and Nasdaq Composite slid 1.8% and 1.5%, respectively. Friday is a shortened trading day because of the Thanksgiving holiday with U.S. markets closing at 1 p.m. ET.

The downward moves came after WHO officials on Thursday warned of a new Covid-19 variant that’s been detected in South Africa. The new variant contains more mutations to the spike protein, the component of the virus that binds to cells, than the highly contagious Delta variant. Because of these mutations, scientists fear it could have increased resistance to vaccines, though WHO said further investigation is needed.

The United Kingdom temporarily suspended flights from six African countries due to the variant. Israel barred travel to several nations after reporting one case in a traveler. Two cases were identified in Hong Kong. Belgium also confirmed a case.

“When I read that there’s one [case] in Belgium and one in Botswana, we’re going to wake up next week and find one in this country. And I’m not going to recommend anyone buy anything today until we’re sure that isn’t going to happen, and I can’t be sure that it won’t,” CNBC’s Jim Cramer said.

Bond prices rose and yields tumbled amid a flight to safety. The yield on the benchmark U.S. 10-year Treasury note fell 12 basis points to 1.52% (1 basis point equals 0.01%). This was a sharp reversal as yields jumped earlier in the week to above 1.68% at one point. Bond yields move inversely to prices.

Asia markets were hit hard in Friday trade, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng index both falling more than 2% each. Bitcoin fell 8%.

The Cboe Volatility Index, often referred to as Wall Street’s “fear gauge,” rose to 28, its highest level in two months. Oil prices also tumbled, with U.S. crude futures down 6.2% to $73.57 per barrel.

Travel-related stocks were hit hardest with Carnival Corp. and Royal Caribbean down more than 10% apiece in early trading. United Airlines dropped 9%, Delta Air Lines and American Airlines were each down more than 7%. Boeing lost 6%. Marriott International fell more than 7%.

Bank shares retreated on fears of the slowdown in economic activity and the retreat in rates. Bank of America and Citigroup were each down more than 4%.

Industrials linked to the global economy declined led by Caterpillar off by 3.7%. Dow Inc. shed 3%.

Chevron dropped 3.2% as energy stocks reacted to the rollover in crude prices.

On the flip side, investors huddled into the vaccine makers. Moderna shares gained more than 16%. Pfizer shares added 5%.

Some of the stay-at-home plays that gained in the earlier months of the pandemic were higher again. Zoom Video added nearly 9%. Netflix was up 1.5%.

“It’s important to stress that very little is known at this point about this latest strain, including whether it can evade vaccines or how severe it is relative to other mutations. Therefore, it’s hard to make any informed investment decisions at this point,” Bespoke Investment Group’s Paul Hickey said in a note to clients. “Historically speaking, chasing a rally or selling into a sharp decline (especially on a very illiquid trading day) rarely ends up being profitable, but that isn’t stopping a lot of people this morning.”

Several investment professionals told CNBC on Friday that the sell-off could be a buying opportunity.

“Friday is the day after Thanksgiving, probably not as many traders on the desks with an early close today. So potentially lower liquidity is causing some of the pullback,” Ajene Oden of BNY Mellon Investor Solutions said on CNBC’s “Squawk Box.” “But the reaction we’re seeing is a buying opportunity for investors. We have to think long-term.”

Markets were closed on Thursday for Thanksgiving, so stocks are coming off of slight gains on Wednesday that staunched the week’s losses for the S&P 500 and Nasdaq Composite. Trading volume tends to be light during holiday weeks.

The Nasdaq is down 2.7% for the week, while the S&P 500 and Dow are off 1.8% and 1.9%, respectively.

The final weeks of the year are typically a strong period for the market, with the so-called Santa Claus rally usually creating a happy holidays for Wall Street. The S&P 500 was up 25% year to date before Friday’s dip.

Friday also marks the unofficial start of the holiday shopping season, as investors will be looking for insight from Black Friday to determine the mood of the U.S. consumer.

ShareTweetPin

Related Posts

Small cap stocks could be setting up to be the big winners. Here’s how to play them

by
August 10, 2022
0

Smal cap stocks could be setting up for a bigger win. Strategists who follow chart trends see breakout potential, and...

Hackers have stolen $1.4 billion this year using crypto bridges. Here’s why it’s happening

by
August 10, 2022
0

Mining the Worlds Second-most-valuable Cryptocurrency at Evobits I.T SRL An engineer inspects Sapphire Technology Ltd. AMD graphics processing units (GPU)...

Disney raises streaming prices after services post big operating loss

by
August 10, 2022
0

The Disney+ website on a laptop computer in the Brooklyn borough of New York, US, on Monday, July 18, 2022....

Disney subscriber growth blows past estimates, as company beats on top and bottom line

by
August 10, 2022
0

In this article DIS A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park...

Disney’s stock jumps 6% after huge subscriber and earnings beat

by
August 10, 2022
0

',panelEmptyTemplate=' {emptyPanelMsg} ',panelErrorTemplate=' {errorMsg} ',panelParentTemplate='',notifOnboardPromoTemplate='',EXPANDED_PANEL="expanded_panel",ERROR_PANEL="error_panel",NotificationView=function(){function e(n,t){classCallCheck(this,e);var i=this;i._config=n,i._panelNode=null,i._store=t}return createClass(e,[{key:"_generatePanelMarkup",value:function(e,n){var t=this._config,i=void 0,o=void 0;"undefined"!=typeof window&&(i=window.Notification&&"default"===window.Notification.permission,o=t.promos.bypassEligibleClassCheck||hasClass(document.body,t.promos.eligibleBodyClass));var r=t.promos.enableNotifOnboard&&i&&o?notifOnboardPromoTemplate:"";if(r){var s=t.promos.showYahooLogo?"":"yns-no-logo";r=r.replace("{notifOnboardBtnLabel}",t.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",t.promos.notifOnboardMsg).replace("{subscriptionTopic}",t.promos.subscriptionTopic).replace("{noLogoClass}",s).replace("{promoLogo}",t.promos.promoLogo)}var a=n.newCount>t.panel.maxCount?n.newCount:"",c=t.panel.notificationCenterPath,l=c?"":constants.panelHideElement,d=t.panel.headerMsg?"":" "+constants.panelHideElement,u=c?constants.panelPaddingBtm:"",p=void 0;n.count?p=n.markup:p=panelEmptyTemplate.replace("{emptyPanelMsg}",t.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",r).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",u).replace("{headerMsg}",t.panel.headerMsg).replace("{hideHeaderClass}",d).replace(/{notificationCenterNavMsg}/g,t.panel.notificationCenterNavMsg).replace(/{newCount}/g,a)}},{key:"render",value:function(e,n){var t=this;if(t._panelNode){var i=void...

Next Post

Four House Price Topics

Dow Jones Dives 900 Points On New Covid Variant Fears; Lucid, Rivian, Tesla Fall

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com