Fear of the Omicron variant and US inflation drove Wall Street down.

source: www.deseret.com

Fear of the Omicron variant and US inflation drove Wall Street down.

The New York stock market suffered sales due to the possibility that the anticovid vaccines of the leading producers are not as effective against the new strain. In addition, the Fed warned that the North American recovery could slow.

Stock prices fell Tuesday on the New York Stock Exchange as the US Federal Reserve considers ending its economic stimulus program, even as fears are raging about the economic impact of discovering the new variant of the coronavirus.

At the close, the Dow Jones lost 1.85% to 34,483.99 points, the Nasdaq technology 1.55% to 15,537.69 units, and the S&P 500 1.90% to 4,566.97. For the month, the Dow Jones fell more than 3%.

The trend arises after the Moderna director told the Financial Times his belief that current vaccines will have difficulties dealing with the omicron variant. As a result, Moderna's shares fell 6.8 percent.

The declines accelerated after Federal Reserve Chairman Jerome Powell told Congress that the central bank is considering acting faster to halt its economic stimulus program in response to inflationary pressures. At the same time, he acknowledged that such forces would likely continue well into next year.

Markets in Asia and Europe also fell. The leading European stock exchanges closed their sessions on Tuesday lower, as calls were discouraged, especially by announcements regarding the lower effectiveness of current vaccines against the omicron variant of covid-19 and growing inflation in the eurozone.

The index FTSE 100 in London lost 0.71% to 7059.45 points. For its part, the Parisian CAC 40 also fell by 0.81%, to 6,721.16 units. Meanwhile, the Frankfurt vedette index, the DAX 40, suffered a slightly more pronounced fall, of 1.18%, to 15,100.13 points. Likewise, the Milanese FTSE Mib was not the exception either, with a decrease of 0.87%, to 25,814.34 units. Finally, the Ibex 35 in Madrid had the worst performance, losing 1.78% to 8,305.10 points.

Many countries have applied travel restrictions to counter the spread of the omicron, which could hurt the global economy. The variant has also raised fears of further disruptions to supply chains if factories and ports have to close.