Omicron Weighs on the Stock Market
Another Setback for the Stock Market
Rising cases of COVID-19 caused concerns for investors yesterday. As a result, stocks plummeted. The Dow Jones Industrial Average finished the trading session down 1.23%. At one point the DJIA fell 700 points. Meanwhile the Nasdaq Composite fell 1.2%, and the S&P 500 dipped 1.1%.
Investors are now left wondering if the Omicron variant will lead to higher inflation or a slowdown for the economy’s recovery. Major manufacturing hubs closed temporarily when the Delta variant was surging, which delayed production, created shortages, and drove prices higher.
President Biden is scheduled to provide an update on COVID-19 policies later today.
Pandemic Reopening Stocks Decline
Uncertainty is weighing on sentiment and causing investors to unload stocks. Investors are worried that spreading cases of Omicron could depress demand, particularly for jet fuel if fewer people board planes.
Outside of energy stocks, travel and leisure companies took a hit due to Omicron fears yesterday. Airlines including United Airlines (UAL) and Southwest (LUV) fell. Royal Caribbean (RCL) and other cruise lines also took a hit.
For nearly two years the pandemic has created fits and starts for the economy. It’s not yet clear what impact Omicron will have. One thing is for sure: investors seem poised to end 2021 with some of the same uncertainty that was present at the start of 2020.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.