White House Supports Waiving COVID-19 Vaccine Patent Protections

Stocks Fall on Omicron Variant Concerns and Questions About the Fed’s Plans



Jerome Powell Speaks to Senators

The Omicron variant and rising inflation could prompt the Federal Reserve to wind down its bond-buying program faster than expected. That sent stocks plunging yesterday. During testimony before a Senate committee, Fed Chairman Jerome Powell said the potential move is in response to the economy’s recovery and rising inflation.

The Fed could raise interest rates in the first part of 2022, earlier than anticipated. The central bank plans to discuss the pace of its tapering at a mid-December meeting. While Powell expects inflationary pressures to ease next year, he acknowledged that rising prices have been more persistent and widespread than expected.

Concerns About Vaccines and the Variant

Questions about the Federal Reserve’s upcoming moves were not the only thing weighing on the stock market. Drugmakers are warning that their vaccines and treatments may not be as effective against the Omicron variant as they are against other strains of the virus. Moderna (MRNA) said its existing vaccine would likely experience a “material drop” in effectiveness against the new variant, and that it could take months for a new vaccine to be available to the public.

Meanwhile, Regeneron Pharmaceuticals (REGN) said that based on early tests, its COVID-19 antibody treatment is less effective in fighting the Omicron variant. Eli Lilly’s (LLY) antibody drug treatment is also less effective against the new strain, according to independent testing.

Lingering Uncertainty

Investors are laser-focused on Omicron and the impact it will have on the economy. Stocks climbed earlier in the week when it appeared the symptoms from Omicron were mild, but news that current vaccines and treatments may not be effective against the variant spooked investors, sending stocks plunging. Travel stocks including Expedia (EXPE) and American Airlines (AAL) took a big hit. Oil prices also declined.

The Omicron variant is adding uncertainty to a market already reeling from rising inflation and other concerns. As investors continue to react to news about the variant, markets could continue to be volatile in the coming weeks.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up


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.
SOSS21120101


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.


TLS 1.2 Encrypted
Equal Housing Lender