Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall St ends lower on Omicron worries, Fed taper angst

EconomyDec 03, 2021 08:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S. December 28, 2016. REUTERS/Andrew Kelly/File Photo

By Devik Jain and Sinéad Carew

(Reuters) - Wall Street's major indexes closed lower on Friday, with the Nasdaq leading the declines as investors bet that a strong jobs report would not slow the Federal Reserve's withdrawal of support all while they grappled with uncertainty around the Omicron coronavirus variant.

After opening higher, Wall Street spent the rest of the session in the doldrums and an elevated volatility index highlighted investor anxiety.

The Labor Department's report, ahead of the session's open, showed that while nonfarm job growth rose less than expected in November, the unemployment rate dropped to 4.2%, its lowest since February 2020, and wages increased.

Separately, a measure of U.S. services industry activity hit a record high in November.

Both sets of data appeared to influence investor expectations for the Fed's next move towards tightening its policy. Fed Chair Jerome Powell said this week that the central bank will consider a faster wind-down of its bond-buying program, prompting speculation that interest rate hikes would also be brought forward.

"There's not enough in the jobs report to dissuade the Fed from accelerating the taper and (it) leaves the door open for a quicker rate hike than the market might have been anticipating," said Steve Sosnick, chief strategist at Interactive Brokers (NASDAQ:IBKR).

On top of this he pointed to concerns that the Omicron variant appeared to be spreading faster than Delta, the last most prevalent version of COVID-19.

The number of countries reporting Omicron cases kept rising on Friday but there was still little clarity on the severity of the disease or the level of protection provided by existing COVID-19 vaccines.

The Dow Jones Industrial Average fell 59.71 points, or 0.17%, to 34,580.08, the S&P 500 lost 38.67 points, or 0.84%, to 4,538.43 and the Nasdaq Composite dropped 295.85 points, or 1.92%, to 15,085.47.

The S&P, the Dow and the Nasdaq all registered declines for a week in which they swung wildly from day to day as investors reacted to Omicron news and Powell's comments.

The S&P's decline of 1.2% was its second weekly decline in a row while the Nasdaq fell 2.62%, also its second straight week of losses. The Dow dropped 0.92% in its fourth consecutive weekly decline.

In a clear indication of investor nerves, Wall Street's fear gauge, the CBOE Market Volatility index, went above 35, in afternoon trading, for the first time since late January. It pared some gains however to close up 9.7 points at 30.67.

Meanwhile the S&P sector outperformers were defensive sectors consumer staples, closing up 1.4% and utilities, adding 1%, followed by healthcare, which climbed 0.25%.

By the end of the session, consumer discretionary, down 1.8%, was the biggest loser, followed by technology, which fell 1.65%.

Decliners included heavyweights such as Tesla (NASDAQ:TSLA), down 6%, and Nvidia (NASDAQ:NVDA), down 4% and both Apple Inc (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) losing more than 1%.

"It's hard to argue that stocks with such huge valuations are defensive," said Interactive Brokers' Sosnick.

And with large cap technology stocks having avoided a recent deterioration in the broader markets, Sosnick said: "That's catching up to those stocks."

The economically sensitive Dow fell less than its peers during the session while other cyclical sectors like industrials, materials also outperformed.

DocuSign (NASDAQ:DOCU) Inc closed down 42% after the electronic signature solutions firm forecast downbeat fourth-quarter revenue.

Declining issues outnumbered advancing ones on the NYSE by a 2.68-to-1 ratio; on Nasdaq, a 3.39-to-1 ratio favored decliners.

The S&P 500 posted 11 new 52-week highs and six new lows; the Nasdaq Composite recorded 15 new highs and 682 new lows.

On U.S. exchanges 13.8 billion shares changed hands compared with the 11.52 billion average for the last 20 sessions.

Wall St ends lower on Omicron worries, Fed taper angst
 

Related Articles

Futures gain as UnitedHealth, BofA rise on results
Futures gain as UnitedHealth, BofA rise on results By Reuters - Jan 19, 2022 2

By Shreyashi Sanyal (Reuters) - Upbeat results from UnitedHealth and Bank of America pushed U.S. stock index futures higher on Wednesday, partially righting a wobbly start to the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (13)
William Bailey
William Bailey Dec 04, 2021 12:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The scam is so out in the open now …. Fed supports the wealthy and media creates panic to shake off everyone else … now will crush crypto and outlaw it
William Bailey
William Bailey Dec 04, 2021 12:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Omicron my butmacron … give me a break
Ron Love
Ron Love Dec 03, 2021 8:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Panic over the common cold omicron variant? Sure, sounds legit.
John Laurens
John Laurens Dec 03, 2021 4:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Omicron (Xi) is extremely mild, and is targeting vaccinated people, so if you're unvaccinated, don't belong to one of the ethnic groups more at risk, or if you're not fat & lazy, please just get on with your normal lives..
Les Rado
Les Rado Dec 03, 2021 4:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Selloff on rumours and speculators stirred by brokers if there is no panic they don't fill their coffers
José López
José López Dec 03, 2021 3:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dejad de vender fillsdeputes!!!
Paul Dunne
Paul Dunne Dec 03, 2021 3:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Me cago en Dieu. :)
José López
José López Dec 03, 2021 3:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Junior Mjoli
Junior Mjoli Dec 03, 2021 2:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
happy weekend to everyone
Chris Sundo
Chris Sundo Dec 03, 2021 1:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Santa Claus rally coming Monday, Dec 6th -- As a kid, my boots placed out on the window sill were found by me as ALLWAYS FILLED ON DECEMBER 6TH --
Rob Chan
Rob Chan Dec 03, 2021 1:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not sure of Monday but yes, it's coming soon. My only rule is buy low, sell high....and it has always worked...Also, I put money which I can leave for a decade...so yes, Santa rally will be for sure
Empire Destroyer
Empire Destroyer Dec 03, 2021 1:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rob Chan where is low and where is high? If we all knew then retailers would never lose
Casador Del Oso
Casador Del Oso Dec 03, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Once sentiment changes downward then look out below.
Matt Novakovich
Matt Novakovich Dec 03, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no one wants to hear this. they already spent their money and now they're gonna watch a 65% correction lol
Daryn Axellus
TomJ Dec 03, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
65%? it's going to be 95%...
Les Rado
Les Rado Dec 03, 2021 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Matt Novakovich   So, the tea leaves show
DIMITRIS DS
DIMITRIS DS Dec 03, 2021 1:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nasdaq dive for noth
DIMITRIS DS
DIMITRIS DS Dec 03, 2021 1:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fixed trades
Rob Chan
Rob Chan Dec 03, 2021 12:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
WHO says they have no records of death due to new variant and cautions against panic. The doctors in SA and Asia say that the symptoms are milder than delta variant.... so who is manipulating..
Rob Chan
Rob Chan Dec 03, 2021 12:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I see two 🐻
Stan Smith
Stan Smith Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why are CEOs and corporate insiders selling their stocks at a far faster rate than we have ever seen before? What do they know? Ssshhh we need more bag holders!
Joseph Ndubuisi
Joseph Ndubuisi Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
exactly what goes through my mind...the selloff is much!!
Invest Right
Invest Right Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I believe "distribution" is the word.
Miriam Morkhul
Miriam Morkhul Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Physical gold and silver. Before it's too late.
Stan Smith
Stan Smith Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Miriam Morkhul  Absolutely! Physical
Les Rado
Les Rado Dec 03, 2021 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They will donate the proceeds to their favourite charities, NOT
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email