December starts with gains, as Dow futures rise 300 points after a sell-off

Stock futures point to a solid bounce for Wall Street, after another sell-off, this time triggered by expectations of a faster Federal Reserve drop as well as worries around omicron variant of the coronavirus.

How to trade stock index futures?

Above Tuesday, the Dow industry

down 652.22 points, or 1.9%, to 34,483.72. S&P 500

fell 88.27 points, or 1.9%, to 4,567, while the Nasdaq Composite

fell 245.14 points, or 1.6%, to 15,537.69. Russell 2000

down 1.9% to 2,198.91, just fear a close of 2,198.47 will send it into a correction zone, defined as a drop of at least 10% from recent peaks.

What drives the market?

Uncertainty has stalked global fortunes since South African scientists announced the discovery of a new and more contagious variant of the coronavirus on Friday. Strocks sank Tuesday after Moderna

Chief executive Stéphane Bancel expressed doubt that current vaccines will provide enough protection for people immunized from the omicron variant.

Read: ‘Don’t worry’: Omicron will definitely disrupt the supply chain. The question is how bad will it be?

The second award for stocks comes after Federal Reserve Chairman Jerome Powell talked about speed up the shrinking process, with a “very strong” economy and “high” inflationary pressures. He made the comments before the Senate Banking Committee on Tuesday, where he appeared alongside Treasury Secretary Janet Yellen.

While Wednesday pointed to a more active session, analysts said the market will remain focused on updates to the omicron variant, with data expected in the next two weeks or so. longer.

Joshua Mahony, senior market analyst at IG, said: “Despite Powell’s decision to drop the term provisional when discussing inflation, the fact that this latest variation risks ensures that This current hawkish tone is temporary in nature,” Joshua Mahony, senior market analyst at IG, said in a note to clients.

“Given the risk of future shutdowns and economic shutdowns, comments from the Fed and BoE should be put in a bit of a salt with the extent to which they may change once we figure out the full range,” Mahony said. degree of this variation.

The US is reported to be set to announce more travel restrictions this week, among which is a requirement that all non-arriving customers be tested for COVID within one day of their flight. Details are being finalized ahead of a scheduled speech from President Joe Biden on Thursday, where he is expected to detail the country’s plan to control the pandemic this winter.

November payroll data is due on Friday, with the ADP private sector payrolls report due Wednesday at 8:15 a.m. Eastern Time, followed by the Institute of Management’s manufacturing index. November supply and October construction spending, both at 10am.

Powell and Treasury Secretary Janet Yellen will make their second appearance on Capitol Hill together on Wednesday, and the Fed’s Beige Book of Economic Conditions is due out at 2 p.m. ET.

Crude oil is also strong recovery from Tuesday’s sharp sell-off. January West Texas Intermediate crude rose 4.8% to $69.31 per barrel, while global benchmark Brent
+ 4.55%

rose 4.8% to 72.52 USD/barrel. Goldman Sachs strategists say the oil market’s reaction has “Excessive” refers to the omicron variation.

How do other assets trade? December starts with gains, as Dow futures rise 300 points after a sell-off


Inter Reviewed is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button