US stock market today: S&P 500 index down 1.9%
Stocks in the United States fell as Thanksgiving sales spread to global markets on fears a new variant of the coronavirus identified in South Africa could trigger a new outbreak and halt a fragile economic recovery. Yes. The assets of the refugee camps have skyrocketed.
Benchmark stocks fell across the board, with Cyclic and Little Caps taking the selling brunt. The S&P 500 fell 1.9 percent while the Dow Jones Industrial Average and Russell fell at least 2.5 percent in 2000. The range of travel and leisure activities declined, but the proportion of stay-at-home orders increased. This helped reduce losses on the Nasdaq 100, which is still off 1.5%.
While traders lowered expectations of a rate hike, government bonds rose sharply, lowering the 10-year yield by 13 basis points. The dollar weakened and the Japanese yen became the main currency of the day. In New York, oil fell to $70 a barrel and gold rose.
The World Health Organization and South African scientists are working “at lightning speed” on how quickly variant B.1.1529 can spread and whether it is resistant to vaccines. I’ve been told that new threats add to the fears investors already face in the form of rising inflation, tightening monetary policy and slowing growth.
“This is bad news,” Ipek Ozcardeskaya, senior analyst at Swissquote, said in an email. “The new version of Covid could damage the economic recovery, but this time there is not enough room for the central bank to act. You cannot fight inflation and stimulate growth at the same time. You decide. Must. ”
Carnival Corporation and Royal Caribbean Cruises lost at least 9%, while United Airlines Holdings lost 10%. Zoom Video Communications Inc. and Peloton Interactive Inc. increased by at least 5%.
Carl Dooley, Cohen’s head of trading for Europe, Middle East and Africa, said: “Uncertainty and fear remain high and we may not return to new highs anytime soon.
The sell-off came after global markets took over from Jekyll and Hyde for several months and stocks broke new records despite concerns about the toxic combination of high inflation and slower growth. Investors invested about $900 billion in exchange-traded and long-term funds by 2021. That’s more than the last 19 years.
“Headlines of any kind will lead to a breakdown in this ranking,” said Brian Bendig, president of MJP Wealth Advisors, in an interview with Bloomberg TV. “We don’t want to be 100% risk assets, whether it’s interest rate risk, inflation risk, political risk, and if this is further evidence of the health crisis telling us we’re all now in a pandemic. Without a doubt. ”
Traders have delayed the expected timing of the Federal Reserve’s first 25 basis point rate hike from June to September, making it easier to price stocks with gains after 2023.
They are also betting on a less than 10 basis point increase by the Bank of England over the next month compared to the 35 basis point forecast a month ago. They urged the European Central Bank to tighten 7 basis points by December 2022, down from 9 basis points observed on Thursday.
The yen and Swiss franc found offers from traders interested in the security, but the dollar lost little. The gains in the euro, the largest constituent of the Bloomberg Dollar Spot Index, also capped the dollar.
The MSCI Inc Asia-Pacific index was at its lowest since early October, while indicators for Japan and Hong Kong were down at least 2%.
Some of the most damaging assets are in emerging markets. The South African currency in which the virus strain was identified was down 1% and the Turkish lira down 2.4%. The MSCI EM currency index fell to its lowest level in six weeks.
Selling continued uninterrupted, but some investors said it was important not to obsess over short-term fluctuations.
Dan Boardman Weston, chief investment officer at BRI Wealth Management, said, “If this pulls the world out of the Covid perspective, inflation will ease, monetary policy will remain loose in the long term and this could affect markets in the medium term.”