Subscribe to Fortune Daily to get essential business stories delivered straight to your inbox each morning. The rise and rapid spread of the Omicron variant is already taking a toll on U.S. markets and has the World Health Organization on high alert. And that’s renewing demand for a fourth stimulus check among some people.
Stocks erased early gains, ending sharply lower Wednesday after the first confirmed U.S. case of COVID-19 caused by the omicron variant was found in California. The Dow Jones Industrial Average fell around 462 points, or 1.3%, to close near 34,022, according to preliminary figures --- a pullback of more than 980 points from the blue-chip gauge's intraday high at 35,004.64. The S&P 500 ended around 54 points lower, down 1.2%, near 4,513; the Nasdaq Composite finished near 15,254, down around 284 points, or 1.8%. Dr. Anthony Fauci, President Joe Biden's top medical advisor, told reporters Wednesday afternoon that the California and San Francisco departments of public health and the Centers for Disease Control "confirmed that a recent case of COVID-19 among an individual in California was caused by the omicron variant."
U.S. Treasury yields were steady on Wednesday, amid investor concerns around the omicron variant and the Federal Reserve's plans to potentially taper faster than expected. The yield on the benchmark 10-year Treasury note fell just 1 basis point to 1.424% by around 4:20 p.m. ET. The yield on the 30-year Treasury bond dipped 2 basis points to 1.762%. Yields move inversely to prices and 1 basis point is equal to 0.01%. Yields rose earlier in the day on Wednesday.
Consumer confidence fell in November to the lowest level in nine months because of worries about high inflation --- and optimism could dip again if a new strain of the coronavirus that's more resistant to vaccines keeps spreading.
WASHINGTON (AP) — U.S. consumer confidence fell to a nine-month low in November, clipped by rising prices and concern about the coronavirus. The Conference Board reported Tuesday that its consumer confidence index dropped to a reading of 109.5, down from 111.6 in October. It was the lowest reading since the index stood at 95.2 in […]
So much for at least one of the Federal Reserve's key mandates: full employment. And you can blame Fed boss Jerome Powell for that who in testimony to the Senate Banking Committee said that it was time to retire the word “transitory. “
The world economy woke up from its pandemic-induced coma in 2021, but soaring inflation, global supply chain bottlenecks and a resurgent coronavirus have taken the shine off the comeback.
Now growth is at risk of weakening next year.
Here is a look at the state of the global economy:
The U.S. dollar strengthened on Tuesday after Federal Reserve Chair Jerome Powell said the risk of inflation had increased and suggested retiring the term "transitory" for inflation, while worries about the new Omicron coronavirus variant kept a bid in safe-haven currencies. During a hearing with the U.S. Senate Banking Committee,...
No recession hits everybody equally. As for the COVID-19 pandemic-fueled recession, the difference in the degree of financial pain experienced between the haves and the have-nots has been pretty staggering. Look no further than the credit markets to see how this dichotomy is playing out. In a typical recession, both...
New York (CNN Business) — Here we go again. Federal Reserve Chairman Jerome Powell is set to testify Tuesday that the Omicron variant threatens America's economic recovery. Much remains unknown about Omicron. Yet if it prolongs the pandemic, it could keep prices rising, hurt job growth and make the supply chain crisis worse.
A long-time market bull is tempering his outlook due to inflation. Federated Hermes' Phil Orlando expects the Federal Reserve will lift interest rates six times over the next two years to tame massive price increases from vehicles to shelter to food. "Our best guess is that we will see two...