Monday, January 17

Wall Street suffered a sharp drop by Omicron and blow to Biden’s law

Shares fell across the board because coronavirus cases spiked in New York City and across the U.S. over the weekend, which it clouded hopes for a more normal Christmas season.

The S&P 500 lost 1.1%, to 4,569.30 units, while the Nasdaq fell 1.2%, to 14,983.22. The Dow Jones Industrial Average fell 1.23% to 34,928.70 units.

The benchmark S&P 500 index traded below its 50-day moving average, a key technical level.

Meanwhile, the British prime minister said he would take further steps to curb the spread of Ómicron if necessary, after the Netherlands started a fourth lockdown and other European nations considered restrictions.

“I think (the stock market) has gone down because of the fear of COVID and how it can spread to the continuing problems in the supply chain and how that will affect profits … for companies.”said Chuck Carlson, CEO of Horizon Investment Services.

The most economically sensitive S&P 500 groups, such as financials and commodities, were among the major declines.

In a further blow to market sentiment, the US Senator Joe Manchin said Sunday that he would not support Biden’s $ 1.75 trillion domestic investment bill, dealing him a life-threatening blow.

Goldman Sachs cut its quarterly US GDP forecast for 2022 following Manchin’s comments.

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