Shares in major U.S. stock indices were up sharply at Wednesday’s open, in a rebound after the crash caused by fears of higher inflation and the appearance of Ómicron, the new variant of the coronavirus.
The Dow Jones Industrial Average was gaining 195.22 points, or 0.57%, to 34,678.94 units. The S&P 500 rose 35.82 points, or 0.78%, to 4,602.82 units and the Nasdaq Composite grew 214.58 points, or 1.38%, to reach 15,752.27 units.
Merck & Co Inc. gained 1.1% in premarket operations after a panel of advisers from The US Food and Drug Administration (FDA) will vote narrowly to recommend that the agency authorize the antiviral pill from the pharmaceutical company to treat COVID-19.
Shares on US stock exchanges tumbled on Tuesday after the chairman of the Federal Reserve, Jerome powell, will indicate to the Senate Banking Committee that no longer considers inflation to be “transitory”.
Powell also said that the US central bank would study the possibility of advance reduction plans of your bond purchase program at your next two-week meeting.
“Most investors realized that the Fed (Federal Reserve) was going to have to change course somehow. There are many people who feel that inflation is a bigger problem, and perhaps a greater risk for the market would be that the Fed does not take any action that recognizes that.“, said Rick meckler, partner of Cherry Lane Investments in New Vernon, NJ.
“Coming to the end of the year, where markets can be a little less liquid, we will likely see some comings and goings until we have more information (on Omicron)”He added.
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Wall Street said goodbye to November with accumulated losses in its three main indicators following recent panic selling linked to the Omicron variant that have turned a normally quiet month on the stock markets. The Dow Jones Industrials cut 3.98%, the selective S&P 500 1.01% and the Nasdaq composite index 0.37%, bad data that, despite everything, are not worse than those of September, the worst month of the year.
Many countries have applied travel restrictions to counteract the spread of the omicron, and this could hurt the global economy. The variant has also awakened fears of further disruptions to supply chains in case factories and ports have to close.
(With information from Reuters and EFE)
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Source-www.infobae.com