Signing out of account, Standby…
Wall Street closed sharply lower on Monday retreating from last week???s record-high closing.
Wall Street closed sharply lower on Monday retreating from last week’s record-high closing. Market participants remained concerned regarding the spread of the Omicron variant and the Fed’s decision regarding future monetary policies. All three major stock indexes ended in negative territory.
The Dow Jones Industrial Average (DJI) dropped 0.9% or 320.04 points to close at 35,650.95. Notably, 23 components of the 30-stock index ended in red while 7 in green. The blue-chip index posted its lowest closing since Dec 6 and the largest single-day point and percentage decline since Dec 1.
The tech-heavy Nasdaq Composite finished at 15,413.28, sliding 1.4% or 217.32 points due to weak performance by large-cap technology stocks. The tech-laden index recorded its lowest closing since Dec 6.
Meanwhile, the S&P 500 fell 0.9% to end at 4,668.97. The broad-market index posted its lowest closing since Dec 6 and the largest one-day point and percentage decline since Dec 1. Seven out of eleven sectors of the benchmark index closed in negative territory while four in green.
The Energy Select Sector SPDR (XLE), the Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), the Financials Select Sector SPR (XLF) and the Industrial Select Sector SPDR (XLI) tanked 2.8%, 2.6%, 1.3%, 1.1% and 1%, respectively. On the other side, the Real Estate Select Sector SPDR (XLRE), the Consumer Staple Select Sector SPDR (XLP) and the Utilities Select Sector SPDR (XLU) gained 1.3%, 1.3% and 1.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 8.7% to 20.31. A total of 10.4 billion shares were traded on Monday, lower than the last 20-session average of 11.4 billion. Decliners outnumbered advancers on the NYSE by a 2.30-to-1 ratio. On Nasdaq, a 2.53-to-1 ratio favored declining issues.
On Dec 13, U.K. Prime Minister Boris Johnson confirmed that at least one patient infected with the omicron variant of coronavirus has died in the country. Prime Minister Johnson said, “So I think the idea that this is somehow a milder version of the virus, I think that’s something we need to set on one side and just recognize the sheer pace at which it accelerates through the population. So, the best thing we can do is all get our boosters.”
On Dec 12, top U.S. infectious disease expert Dr. Anthony Fauci said that the COVID-19 booster shots are “optimal care” as the virus is mutating continuously and spreading rapidly. However, for the time being, the U.S. government is emphasizing on Americans to b fully vaccinated. In the United States, 25 states have detected the presence of Omicron variant of coronavirus so far. Sine the outbreak of coronavirus in March 2020, more than 800,000 U.S. citizens have died after infected by any variant of COVID-19.
As investors shifted funds from risky assets like equities to safe-haven government bonds, the yield on the benchmark U.S. 10-Year Treasury Note declines 6.4 basis points to 1.423%. Reopening stocks such as Norwegian Cruise Line Holdings Ltd. NCLH, Carnival Corporation & plc CCL and Royal Caribbean Cruises Ltd. RCL tumbled 4.4%, 4.9% and 4.4%, respectively. All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fed officials are scheduled to meet for the last FOMC meeting of this year to be held on Dec 14-15. On Nov 30, in his testimony before a Senate committee, Fed Chairman Jerome Powell said that the central bank will discuss speeding up the tapering process of its monthly bond-buy program in the upcoming FOMC meeting. Current inflation is no longer transitory to Fed.
Powell said “At this point, the economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner.”
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
To read this article on Zacks.com click here.
Nimesh Jaiswal
robbennett
Zacks Equity Research
Annie Scranton
Amanda Breen
Kelly Hyman
Successfully copied link
