Wall Street Opens Varied, Technology Stocks Hunted Back

Jakarta, CNBC Indonesia – The United States (US) stock market slammed at the opening of trading Tuesday (11/30/2021), after the latest variant of the Covid-19 virus again triggered market anxiety.

The Dow Jones Industrial Average dropped 250 points at 08:30 local time (21:30 WIB) and within 30 minutes to 292.8 points (-0.83%) to 34,843.16. The S&P 500 lost 22.2 points (-0.48%) to 4,633.03. However, the Nasdaq is still up 8.2 points (+0.05%) at 15,791.

The correction occurred after Moderna CEO Stephane Bancel assessed that the existing vaccine would be less effective against Omicron. To CNBC International, he said it would take months to develop an effective vaccine against the new variant.

Wall Street’s volatility index, or CBOE index, weakened Monday but is still above 22. The market fear index briefly hit 28 on Friday. Moderna shares plunged 4%. In contrast, Netflix shares grew 1.4%, Tesla rose 1.5% while Zoom rose 2.3%.

Yield (yield) 10-year bonds fell to 1.45% after investors worried that the development would trigger further economic growth. The yield on the benchmark government bonds fell 9 basis points (bp) to 1.44% or the price rose because investors were being chased by anxiety.

On Monday, the Dow Jones rose 237 points after dropping 905 points on Friday. Travel stocks, which turned higher on Monday, took another hit at the open today. Shares of Expedia fell 2%, Norwegian Cruise Line Holdings dropped 2% and American Airlines fell 2.5%.

Monday’s rally came after US President Joe Biden said the lockdown (lockdown) is not a prepared option and there will be no new travel bans.

However, today the boss of the US central bank (Federal Research/The Fed) Jerome Powell stated that the omicron variant threatens price stability and job creation, which is the mandate of the world’s strongest central bank.

“This week will be decisive to see if the buy approach amid corrections by investors will still hold, or if the market remains vulnerable to further significant pressure,” said Mark Hackett, Nationwide’s head of investment research. CNBC International.

The World Health Organization (WHO) assesses omicron as a variant that needs attention. Preliminary evidence suggests that the South African strain increases the risk of reinfection.

According to doctors from South Africa, who first discovered the presence of this new strain, the new variant causes moderate symptoms. However, the WHO said it would take several weeks to understand how the variant affects current diagnostics, therapy and vaccines.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

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