US investors return to Wall Street despite Omikron worries

Trader on the New York Stock Exchange

View of the trading floor of the New York Stock Exchange.

(Photo: dpa)

Frankfurt, New York After the price losses on Friday, US investors were on the lookout for favorable buying opportunities at the start of the week. Technology stocks were particularly in demand. Investors hoped these would be the best way to weather the pandemic.

The technology-heavy Nasdaq index rose by up to 1.6 percent to 15,741 points when it opened on Monday. In the further course it rose further, up to 2.2 percent to 15,821 points. The Dow Jones index of standard values ​​rose by up to 1.1 percent to 35,288 points, then fell by around one percent to 35,229 points. The broader S&P 500 rose 1.6 percent to 4669 points.

On Friday, the indices collapsed between two and 3.5 percent after the fear of the newly discovered omicron variant of the corona virus led to a sell-off on the stock exchanges around the world.

“With a view to the future, the decisive question is how dangerous the new variant really is,” said the analysts from Berenberg. “Little is known at the moment. If the Covid-19 vaccinations also work with this variant, the markets should rise again towards the end of the year. Otherwise it should be rather uncomfortable. “

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While scientists continue to research the mutation, it is already spreading in several countries. According to CNBC, no case is known in the USA. However, there are plans to restrict travel to the southern states of Africa. US President Joe Biden wants to inform US citizens about the new Corona variant and the reaction of the USA during the course of the day.

Von der Leyen: “The fight against Omikron is a race against time”

The stocks that were one of the hardest hit on Friday were among the biggest winners. Such as those of the major airlines American Airlines, Southwest Airlines, Delta Air Lines and United Airlines. They broke in on Friday.

On Monday night, Bill Ackman, fund manager at Pershing Square Capital Management, wrote via Twitter: “While it is too early for definitive data, some data suggest that Omicron virus causes ‘mild to moderate’ (less severe) symptoms and is more easily transmitted. If this turns out to be true, it is bullish for the markets, not bearish. “

Look at individual values

Moderna: The vaccine maker’s shares continue to rally, rising more than ten percent on Monday. Already on Friday they increased by 20 percent. Early next year, Moderna could launch a reformulated vaccine against the Omicron variant, the company’s medical director said on Sunday. Biontech also grew, with a plus of 3.9 percent.

Airlines: After the shares of major airlines collapsed on Friday in response to the newly discovered Omikron variant, investors grabbed it. United, Delta and American Airlines are each gaining around 2.5 percent at their peak, after losing around 7 percent each on Friday. The travel booking website Expedia also increased 5.4 percent.

Merck: The pharmaceutical company’s shares fell 5.8 percent after Citi downgraded its stock from “buy” to “neutral”. The slow development of the company’s HIV drug Islatravir would affect Merck’s long-term potential.

Coinbase: Cryptocurrency exchange stocks are up five percent after Bitcoin price also rebounded. Other crypto-related stocks are also experiencing an upswing: Microstrategy is up 5.3 percent, Tesla and Square by more than 2.5 percent.

zoom Video: Zoom shares fell around four percent at the stock market launch and 1.8 percent later, after rising 5.7 percent on Friday. Other stay-at-home stocks also fell slightly at launch, including Peloton, Netflix and Teladoc.

Applied DNA Sciences: The shares shot up by 20 percent after the medical technology company announced that their PCR test can be used to detect the new Omikron variant.

Twitter: The shares of Twitter gained up to eleven percent at the start of the stock exchange, after which they fell by 1.3 percent. Twitter boss Jack Dorsey will resign from his post, a person familiar with the matter told Reuters, confirming a CNBC report.

More: How dangerous is the new corona variant for the markets? That’s what investment strategists say

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