Tuesday, January 25, 2022
News

US stocks down 2nd week in row on Federal Reserve Rate hike, Omicron fears

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

US | December 4, 2021 6:19:06 AM IST
New York [US], December 4 (ANI/Sputnik): US stocks tumbled for a second week in a row, roiled by fears of an imminent rate hike by the Federal Reserve and the possibility of another round of global economic turmoil from potential measures to address the coronavirus Omicron variant.

The Labor Department announced earlier on Friday the unemployment rate in November stood at just 0.2% above the Federal Reserve's 4% target for maximum employment and key criteria for an interest rate hike. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank was already thinking of speeding up the taper of its pandemic-era stimulus and putting in a rate hike as expeditiously as possible to rein in inflation.

Reports of cases of Omicron in the United States have begun flowing in, with more states reporting infections after the first one reported in California earlier this week.

The November jobs numbers and Omicron cases proved to be a double-whammy for Wall Street.

At the close, the biggest losers were technology stocks on the Nasdaq Composite. The index - which groups Big Tech names such as Facebook, Apple, Amazon, Netflix and Google - fell 296 points, or 1.9%, on the day to close at 15,086. For the week, the Nasdaq fell 2.6%, adding to last week's 3.5% rout.

The Dow Jones Industrial Average, which comprises mostly industrial stocks, lost 60 points, or 0.2%, to settle at 34,580. The Dow fell almost 1% on the week, after last week's drop of nearly 2%.

The S&P 500 index, which groups the top 500 US stocks, finished down 39 points, or 0.8%, at 4,538. The S&P fell 1.2% for the week, adding to last week's 2.2% drop.

Despite their recent setback on Omicron fears, US stocks are still having one of their best years, with the Dow up 13%, the S&P 500 showing a gain of 20% and Nasdaq a rise of 18%.

"It's clear from comments this week by Chairman Jerome Powell and his colleagues that the plan has changed recently and they now intend to taper faster, raise rates sooner," Craig Erlam, an analyst at online trading platform OANDA, said. "But Omicron could complicate efforts further just as the economic data was starting to catch up. A strong (jobs) report today leaves the Fed[eral] Reserve well and truly backed into a corner." (ANI/Sputnik)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE WORLD NEWS
James Webb telescope reaches final stabl...
Pakistan rights commission condemns kill...
UN asks Taliban to probe issue of missin...
Trump says Russia-Ukraine situation woul...
Burkina Faso's army says President Roch ...
US takes steps to ban imports from China...
More...
 
INDIA WORLD ASIA
Consistent govt approach, mass awareness...
Assembly polls: BJP authorises Nadda to ...
Dangerous move, says KCR on proposed ame...
UP polls: BJP OBC Morcha to hold indoor ...
Cattle smuggling case: SC grants bail to...
TMC fields ex-Cong leaders Tanwar, Dev t...
More...    
 
 Top Stories
US takes steps to ban imports from ... 
James Webb telescope reaches final ... 
Imran's incompetence costing Pakist... 
Income disparity increasing, says C... 
Budget FY23: Big boost to MSMEs exp... 
BJP ally NPP announces 1st list of ... 
Odisha Open Badminton: Excitement g... 
Delhi's Covid cases fall to 5,760, ...