Dow Futures Down 855 Pts as New Covid Tribe Shadows Black Friday by Investing.com


© Reuters.

By Peter Nurse

Investing.com – US stocks are seen aggressively lower Friday, in holiday-diluted volumes, as the discovery of a new potentially vaccine-resistant Covid variant raised fears of new damage to the global economy.

At 7 AM ET (1200 GMT) the contract had fallen by 855 points or 2.4%, traded 90 points or 1.9%, lower and fell further, falling 210 points or 1.3%.

The sale followed the news that the World Health Organization was studying a new variant of the Covid-19 virus, which has mainly been discovered in southern Africa.

The UN agency has convened an emergency meeting on Friday to discuss what this means for existing treatments, as the new variant has a peak protein that is mutated to be very different from that of the original coronavirus on which the vaccines are based. on.

Britain reacted quickly to the news by temporarily suspending flights from six countries in southern Africa and quarantining travelers from those regions. This resulted in huge losses for the airline and the travel industry in European hours, and this negative sentiment will lead to Wall Street.

American Airlines (NASDAQ 🙂 stock fell over 6% before the market, with Delta (NYSE 🙂 and United (NASDAQ 🙂 following suit, while Carnival (NYSE:) stock fell over 9%, as did Royal Caribbean (NYSE 🙂 stock.

The banking sector also weakened as the Bank of America (NYSE :), Citigroup (NYSE :), JPMorgan Chase (NYSE :), Goldman Sachs (NYSE :), Wells Fargo (NYSE 🙂 and Morgan Stanley (NYSE 🙂 all fell by more than 3% due to the reduced likelihood of early rate hikes if the Federal Reserve is intimidated by the new variant.

Crude oil prices also fell as the announcement of the new Covid-19 strain raised concerns about demand, just as a US-led coalition of major consumers is adding production to global supply.

At 7 AM ET, futures traded 6.6% lower at $ 73.20 per barrel, while the contract fell 5.9% to $ 77.39.

Exxon Mobile (NYSE 🙂 stock fell 5.6% in response to and Chevron (NYSE 🙂 stock fell 4.7 percent.

On the flip side, people like Zoom Video (NASDAQ 🙂 and Peloton (NASDAQ :), two of the biggest winners of the pandemic, traded higher in Friday’s premarket as the emergence of the new Covid variant raised fears that countries could bring back restrictions for the movement of persons.

Elsewhere, the Didi (NYSE:) stock will be in the spotlight after Chinese authorities asked the company to delist from the NYSE due to security fears, while Tesla’s (NASDAQ 🙂 CEO Elon Musk sold more shares in the electric car maker.

Investors will also look at the retail sector after an unstable week, with Friday marking the unofficial start of the Christmas shopping season.

A number of retailers saw their stocks plunge this week, including Gap (NYSE 🙂 and Nordstrom (NYSE :), after warning of stock shortages and supply chain constraints in their third-quarter earnings reports.

In addition, it rose 1.6% to $ 1,812.55 / oz while trading 0.7% higher at 1.1282.

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