US markets are on alert due to the omicron scare. Investors are trying to gauge the impact of the new variant as of now. The index of S&P went up by 1.9% in the morning and went down by 1.2% by the closing time on Wednesday. The afternoon incident left quite a shocking impact as the mutation spreads its wings. Wall Street went subsequently low as the White House announced the first omicron variant is detected from a passenger boarding from south Africa. The Wall Street target went very low 2.3% on Friday, stated as the worst loss since February. It did see a rise of 1.3% on Monday but again went down by 1.9% on Tuesday.
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Such disastrous incidents are a direct impact on investors who are trying their best to gauge the damage that the new mutation will bring to the market. “Investors are going to have to get used to the idea that this is not going to be the last variant.” “This is likely something that is with us for a while and we have to learn to live with it and manage growth from an investment standpoint,” said Liz Young, chief investment strategist at SoFi.
“We tried to buy the dip again (on Wednesday) but news that Omicron is here already has taken some of the wind out of the sails of the bulls,” said Zaccarelli, CIO at Independent Advisor Alliance. During the early afternoon, 11 major S&P sectors were on the gaining side but that went down subsequently during the end of the day. The communication sector took a major hit, whereas the technology sector was on the safe side due to Apple Inc.
The head of the Federal Reserve announced that it will put a constraint on the financial support to the market due to the inflation risks. This was a severe bomb dropped on the US market. Omicron will give the companies a run for their capital.
