Stocks slide as Omicron variant cases surge globally
Global News
Global stocks dropped on Monday in a broad selloff as investors worried about a deluge in COVID-19 Omicron cases potentially undercutting the economic rebound
Wall Street’s main indexes dropped more than one per cent on Monday in a broad selloff as investors worried about a deluge in COVID-19 cases potentially undercutting the economic rebound and a critical blow to President Joe Biden’s domestic investment bill.
All major S&P 500 sectors were lower as coronavirus cases surged in New York City and around the United States over the weekend, dashing hopes for a more normal holiday season. Britain’s leader said he would take more steps to slow the spread of the Omicron coronavirus variant if needed, after the Netherlands began a fourth lockdown and as other European nations considered restrictions.
“Typically what happens in Europe is a bit of a preview for what we see in the United States. So, if we see a lot more infections in the U.S., it could stress hospitals, make people less reluctant to get out, spend and partake in the economy. That’s definitely a cause of concern,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The Dow Jones Industrial Average fell 551.14 points, or 1.56 per cent, to 34,814.3, the S&P 500 lost 67.14 points, or 1.45 per cent, to 4,553.5 and the Nasdaq Composite dropped 233.33 points, or 1.54 per cent, to 14,936.35.
The benchmark S&P 500 traded below its 50-day moving average, a key technical level.
Economically sensitive S&P 500 groups such as financials and materials were among the biggest sector decliners.
Meanwhile, Canada’s main stock index also started the trading week on a downward spiral amid concerns that surging Omicron COVID-19 cases could dampen economic growth and exacerbate supply chain problems.
The S&P/TSX composite index down 322.67 points at 20,416.52.