Wall St. roils as Omicron cases surge, Biden spending plan setbacks

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Wall St. roils as Omicron cases surge, Biden spending plan setbacks

On Monday, all three key indices of Wall St. had witnessed a red sea of Nile with major indexes tumbling more than 1.0 per cent amid growing possibilities of another leg of pandemic-associated restrictions, while a lethal blow to US President Joe Biden $1.75 trillion infrastructure bill had added to further strains.

Fanning up the flames further, WHO (World Health Organization) had raised an alarming bell on Monday saying Omicron cases were doubling up in 1-1/2 to 3 days, while US Omicron cases had already surged by 50 per cent this month, eventually pouring cold water on investors’ morale.

On top of that, US Senator Joe Manchin, a conservative democrat who has been a centerpiece to Biden’s plan to pass his $1.75 trillion infrastructure bill in US Senate, said over the weekend that he would not support the stimulus package given its long-standing repercussion on Government’s soaring budget deficit.

If truth is to be spoken, latest leg of ludicrous headwind in the Wall St. came forth shortly after last week’s US Fed policy statement, when the US Central Bank had announced a speed-up at its bond taper program alongside at least three rate hikes in 2022 and 2023 each.

Wall St. in freefall as pandemic cases mount

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow lost 1.23 per cent to 34,932.16 and benchmark S&P 500 shed 1.14 per cent to 4,568.02, while tech-heavy Nasdaq was nudged as much as 1.24 per cent lower to 14,980.94.

Meanwhile, addressing to a darkening of outlook further in the Wall Street, a Chief investment officer at Cresset Capital Management, Jack Ablin said, “It was kind of a triple whammy on the economy over the weekend: Omicron, the Fed, and taking the fiscal initiative off the table.

The market is taking a hit. I think it’s an economic reset that investors are kind of gauging”.