THE STOCK MARKET CRASHED DUE TO OMICRON

stock market crashed

Only when life gathered all the normality it had lost, a new Covid-19 variant was discovered in South Africa. This new variant is called Omicron. World Health Organization (WHO) has warned of high re-infection risk for this virus. Considering the threat, traveling from South African counties has been stopped, and a new wave of fear has taken over the globe.

STOCK MARKET SHOCK

The stock market crashed after the news of this variant, and the results were quite devastating. Friday proved to be the worst day for Wall Street’s benchmark index since February 2021. Investors decided to play safely to save themselves from another unanticipated loss due to this new variant. Banks travel stocks, energy companies; you name them. This variant has affected every business in the USA. S&P 500 index dropped by 106.84 points, which is about 2.3%. On the other hand, NASDAQ fell 353.57 points, which is about 2.2%.

AIRLINE AND OIL STOCKS

Experts state that investors are trying to avoid a situation similar to what occurred during the delta variant. Omicron is highly transmissible and has already been detected in South Africa, Hongkong, Belgium, and Tel Aviv. Despite few cases as of now, the effect has already begun. Investors rapidly sold airline stocks off with the news of travel restrictions. The ever-increasing oil prices came down by 13% as Exxon and Chevron shares fell by 3.5% and 2.3%, respectively. 

VACCINE MANUFACTURERS

However, vaccine manufacturers claimed the benefit of this stock market shock. Pfizer jumped 6%, while Moderna shares rose over 20%.

UNCERTAINTY

The market is under a lot of scrutinies and is very uncertain of events that might occur. Let’s hope that this variant does not turn out to be as deadly as the ones previously.

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