had become A slight return on Wall Street on Monday, when all major indexes rose between 0.7 and 1.9 percent. It happened after a heavy fall on Friday last week, not only in the United States, But also in the rest of the global stock markets.
However, on Tuesday, stocks pointed lower ahead of the US stock market opening. All futures indicators are pointing down After a dismal vaccine statement from the president of Moderna, in addition to the general virus fear, the news that also sent the Oslo Stock Exchange lower in the afternoon hours.
At the opening, the major indexes fell by as much as half a percent, but after a short time the decline intensified. This is how the major US indices ended at the close of trading:
- The Dow Jones Industrial Average closed 1.85 percent lower.
- The Standard & Poor’s 500 index fell overall by 1.9 percent.
- And Nasdaq, the owner of heavy technology, closed 1.55 percent.
At the same time, oil prices continue to fall. At the time of writing, the price of a barrel of North Sea oil is $69.9, down more than four percent. In the past month, the price of oil has fallen more than 16 percent.
Not unexpectedly, especially tourism actors who avoid it. Expedia Group and Norwegian Cruise Line both fell more than three percent. Moderna’s share fell 4.3 percent on Tuesday after the CEO’s statement.
Allows early phasing out of support purchases
US Federal Reserve Chairman Jerome Powell appeared on Tuesday afternoon at a US Senate hearing. In his prepared speech for the hearing issued yesterday, he emphasized that Omicron poses a threat to the US economy.
“The increase in the number of new coronavirus cases and the emergence of the omicron variable poses a negative risk to employment, economic activity and the uncertainty surrounding inflation,” she added.
At the hearing, Powell indicated that the central bank, the Fed, could begin to accelerate the reduction of the support purchases the Fed has made in the market during the pandemic. Powell further said that the downsizing will be discussed at the upcoming December meeting of the Federal Reserve.
At present, the economy is strong and inflationary pressures are higher. So, I think it’s time to consider completing the downsizing maybe a couple of months ago, he says CNBC.
The central bank has been buying government bonds and other fixed-income government securities for $120 billion a month since June last year in so-called “quantitative easing” to support the economy, and the program has helped US stocks continue to rise to record levels this year.
Now this will be reduced by $15 billion per month in November and December, and similar cuts are likely in the future, although the Fed confirmed earlier in November that it could adjust the level if the economic outlook changes.
Exciting reason
Chief Economist Kjersti Haugland at DNB Markets He cites Moderna CEO’s remarks as the catalyst for the market’s decline.
He also believes it will take months before drug companies can mass-produce a new vaccine that specializes in different types of virus.
This week comes several exciting key numbers, such as inflation numbers from the Eurozone, employment numbers from the US and activity numbers from the manufacturing and services sectors. However, the omikron virus overshadows that information, Haugland told DN Tuesday morning.
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