ETF Areas to Gain/Lose on Fear of Omicron Strain of Coronavirus – Investing.com

ETF Areas to Gain/Lose on Fear of Omicron Strain of Coronavirus – Investing.com

The emergence of a new coronavirus strain, namely Omicron, is found to have a much bigger impact on Wall Street than anticipated. Europe enacted lockdown last week due to rising virus cases that started unnerving global investors. The World Health Organization called the new variant “highly transmissible.”

As a result, Wall Street had a bloodbath on Nov 26,with the Dow Jones Industrial Index losing 2.53% in its worst post-Thanksgiving Day performance since 1931. The S&P 500 and the posted their worst-ever returns post-Thanksgiving Day. The lost 3.67% on Nov 26. retreated 13% on that day, leaving investors scratching their heads to find a green corner in Wall Street on Black Friday.

Cases of the new variant were found in Hong Kong, Belgium as well as in major South African cities like Johannesburg. Flights between South Africa and Europe were being subject to quarantine or shut down altogether. Airline stocks have been battered already. All these raised worries regarding the sustainability of economic recovery from the pandemic-led slump. The flight to safety brought down the U.S. treasury yield to 1.48% on Nov 26 from 1.64% the day before.