Opening Bell: Global Omicron Relief Rally Slows; Oil Recovers, Bitcoin Slides – Investing.com

Opening Bell: Global Omicron Relief Rally Slows; Oil Recovers, Bitcoin Slides – Investing.com

Market leadership shifts again flipping between US tech and small caps

Treasury yield curve narrows

Bitcoin slides below $50,000

Key Events

After the biggest rally on Wall Street in nine months yesterday, on Wednesday contracts on the , , and moved slightly higher as investors took the chance to slow down and breathe. The current narrative says traders have been repositioning portfolios according to the latest headlines on the Omicron variant of COVID-19, thereby adding volatility and whipsawing markets.

Yields on US Treasuries fell and the dollar was also weaker.

Global Financial Affairs

Investors were encouraged by the latest reports showing that COVID-19 vaccines provide partial protection against the new Omicron variant. However, after the initial relief that additional lockdowns no longer appear likely, we expect to increase as investors refocus on tightening US monetary policy.

US futures rose for the third day on Wednesday. However, the paradigm shifted from yesterday's leadership by mega-cap technology stocks on the NASDAQ 100 to small caps on the Russell 2000 index, perhaps indicating that investors are re-focusing on the economic recovery story.

In Europe, a rally in healthcare stocks overshadowed a slump in the energy sector, leading the Index higher after its strongest