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US markets settle deeply in red as omicron fears intensify

21 Dec 2021 Evaluate

The US markets ended lower with cut of over one percent on Monday as rapidly spreading Omicron variant of the coronavirus raised concerns about global economic recovery. The spread of the Omicron variant could also lead to further global supply chain issues, which have contributed to elevated inflation. The omicron variant is raging across to the world as the winter holiday season approaches. US cases are jumping into year-end with more than 156,000 reported on Friday. The strain has been found through testing in 43 out of 50 US states and around 90 countries, and the number of cases is doubling in 1.5 to 3 days in areas with community transmission, according to the World Health Organization.

Several countries, including France and Austria have tightened travel restrictions. Paris canceled its New Year's Eve firework celebration, while Germany, which has ruled out a Christmas lockdown, has warned a fifth wave could no longer be stopped. Besides, concerns about the deadlock over US President Joe Biden's $1.75 trillion investment bill also weighed on sentiment. Sen. Joe Manchin, a conservative Democrat from West Virginia, said over the weekend that he won't support the Biden administration's Build Back Better plan.

Dow Jones Industrial Average fell 433.28 points or 1.23 percent to 34,932.16, Nasdaq dropped 188.74 points or 1.24 percent to 14,980.94 and S&P 500 was down by 52.62 points or 1.14 percent to 4,568.02.

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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