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U.S stock futures, bond yield, and oil prices fell after a steady increase due to growing concerns and restrictions over the rapid spread of the Omicron coronavirus strain.
Dow Jones Industrial Average futures fell 2.35 percent. The S&P 500 futures declined 1.32 percent, while the Nasdaq 100 futures were down 1.50 percent.
The main averages are coming off a down week, with the S&P 500 down 1.9 percent. Last week, the tech-heavy Nasdaq Composite fell over 3% as investors unloaded high-flying growth firms on the threat of increasing interest rates, while the Dow fell 1.7 percent.
President Joe Biden warned last Thursday that the Omicron is spreading more quickly in the United States, that it could be a winter of severe disease and death for those who have not been vaccinated.
The World Health Organization (WHO) on Saturday said as the winter holiday season approaches, the omicron virus is raging throughout the world. The strain has been identified through testing in 43 of the 50 U.S. states and around 90 countries, with the number of cases doubling every 1.5 to 3 days in regions with community transmission.
Moreover, Biden is to provide an update on the fight against Covid-19 in the U.S, where cases are rapidly increasing.
California and New York are once again compelling people to wear masks in all indoor public places across the state.
Bond Market
At 6:06 AM, the yield of the benchmark 10-year Treasury note decreased by over 3 basis points to 1.387 percent. The 30-year Treasury bond fell slightly under 3 basis points to 1.806 percent.
Oil Prices
Oil prices plummeted on fears that the spread of the Omicron variant will reduce oil demand. Brent crude futures, the global oil benchmark, fell 2.6 percent to $71.16 a barrel. Crude oil prices in the United States declined 3.6 percent to $68.30 per barrel.
Fed Policy Meeting
The Federal Reserve said last week that it will stop buying bonds in March 2022 and gradually raise interest rates by the end of the year, indicating that the inflation objective has been fulfilled.
Following a two-day policy meeting, the central bank said that it will begin purchasing $60 billion in bonds per month in January and finish the program in March.
That's half of what it purchased in November before the taper, and $30 billion less than it was buying in December.
Picture Credits: Yahoo Finance