4:05pm: US equities end with a hard fall
US stocks tanked for a hard close as investors reassessed risks associated with the new COVID-19 variant, omicron.
In addition, major averages dropped further after Federal Reserve Chairman Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting.
On the day, the Dow Jones Industrial Average dropped by 651 points, or 1.85%, to 34,484 and the S&P 500 fell 1.9% to 4,566.
And the tech-heavy Nasdaq declined 1.55% to 15,537.
12.05pm: Selling pressure intensifies as Fed chairman Powell talks speeding up tampering
US stocks were sharply lower in noon trading as coronavirus (COVID-19) Omicron variant concerns persist and Federal Reserve chairman Jerome Powell said the central bank will discuss speeding up bond-buying taper at its December meeting.
At midday, the Dow dropped 648 points to 34,488, while the S&P 500 lost 86 points at 4,569 and the tech-heavy Nasdaq fell 306 points to 15,477.
“The stock market is laser focused on news flow tied to Omicron,” Leuthold Group chief investment strategist Jim Paulsen said
“The rally (on Monday) was boosted by soothing reports from South Africa that its symptoms seemed to be mild, and this morning, it is being rocked by news from Moderna that Omicron could invalidate our existing vaccines and necessitate a new and improved vaccine which could take months to develop,” Paulsen added.
Apple Inc (NASDAQ:AAPL) was among the notable movers to the upside, gaining more than 1%.
11.03am: Proactive North America headlines:
Kintara Therapeutics (NASDAQ:KTRA) announces first international site activation in its Phase 2/3 clinical trial for glioblastoma multiforme
ME2C Environmental (OTCQB:MEEC) secures new license agreement of its patented technology with Midwest utility
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) delivers on expansion plans into Indiana as it reports Q3 results
Globex Mining Enterprises options land package in the Joutel camp in Quebec to Orford Mining Corp
Great Atlantic Resources closes first tranche of a non-brokered private placement for gross proceeds of $1,280,500
Plurilock Security announces Fall 2021 product release
PharmaDrug aims to start clinical studies using cepharanthine for coronavirus in the second half of next year
Safe-T Group (NASDAQ:SFET) Ltd sees 3Q revenue soar 137% supported by CyberKick acquisition
Ridgeline Minerals (TSX-V:RDG, OTCQB:RDGMF) says JV partner Nevada Gold Mines set to kick off drilling at the Swift gold project in Nevada
The Parent Company (OTCQX:GRAMF, NEO:GRAMU) adds two key hires to bolster its executive team and social equity ventures program
Nextech AR Solutions launches ARitize 3D software-as-a-service for e-commerce
BioLargo inks strategic partnership with Ikigai Holdings to launch its new pet odor control product, POOPH
Talon Metals reveals another round of high-grade drill results from its Tamarack nickel-copper-cobalt project in Minnesota
Algernon Pharmaceuticals appoints former Medicure (TSX-V:MPH) financial chief James Kinley as CFO
Aurelius Minerals intersects high-grade gold at its Aureus East project in Nova Scotia
MedX Health positioned for a strong 2022, new CEO says as the company reports 3Q results
Kodiak Copper boosts senior management with new corporate secretary and vice-president of corporate development
PsyBio Therapeutics shares updates on intellectual property and clinical development milestones
Western Magnesium says its corporate operations have officially moved to Washington DC as it targets US industrial base
NEXE Innovations says both its XOMA Superfoods and NEXE Coffee beverages to be available for sale on ECSCoffee.com in December
Zinc8 Energy Solutions (CSE:ZAIR) ends 3Q with $11.6M balance sheet as it advances toward commercialization in long duration energy storage market
Else Nutrition Holdings Inc (OTCQX:BABYF, TSX-V:BABY) sees big boost in revenue in 3Q, thanks to strength of online sales and new listings like Walmart.com
Real Luck Group (TSX-V:LUCK, OTCQB:LUKEF) ends 3Q with strong cash position and no debt
Wishpond Technologies looks a pandemic winner as it helps businesses achieve success online
Moderna boss predicts existing COVID-19 vaccines will be less effective against Omicron variant
Facebook told to ditch GIF-sharing platform Giphy
QC Copper and Gold completes acquisition of in-fill claims on its flagship Opemiska copper project in Quebec
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) says year-to-date subscription revenue rose 22% as it builds partnerships
Organic Garage (TSX-V:OG) says its subsidiary Future of Cheese Inc launched plant-based brie in Ontario
Victory Square Technologies reports strong balance sheet for first nine months of 2021 as it unlocks value in portfolio companies
FansUnite reports strong 3Q revenue growth and says American Affiliate acquisition positions it for expansion
Kainantu Resources making continued progress at Papua New Guinea as it posts third-quarter update
BlueRush reports strong growth in full-year SaaS revenue and says sales momentum has continued
Naturally Splendid Enterprises posts revenue of C$149,614 in third quarter as it focuses on plant-based entrees
ZEB Nickel announces appointment of John Zorbas to the company's board of directors
9.50am: US stocks sent lower by virus fears
Shares in New York were back against the wall on Tuesday - the last day of November - as the new Omicron coronavirus (COVID-19) variant continues to spook traders.
In New York, the Dow Jones Industrial Average tumbled around 308 points at 34,827, while the S&P 500 plunged over 33 at 4,621.
The tech-laden Nasdaq exchange lost around 60 points at 15,722.
It comes after stocks rebounded on Monday as hopes over the effectiveness of existing vaccines against the new virus strain began to gain momentum. But the Moderna chief and his earlier comments appear to have put a big dampener on that.
Markets are also "dialling back expectations of when central banks might look to accelerate any normalisation measures", noted Michael Hewson, market analyst at CMC Markets.
"Expectations had been rising in recent days that the Federal Reserve might accelerate the pace of its tapering program when it meets in mid-December. This now appears to be up for grabs with markets looking to today’s testimony by Fed chair Jay Powell to US lawmakers to gather clues as to the central banks thinking on the likelihood of this happening," he said.
6.30am: US stocks seen opening down
US stocks are expected to open lower after the chief executive of drugmaker Moderna Therapeutics Inc (NASDAQ:MRNA) predicted that existing vaccines will be less effective against the Omicron variant than other strains of coronavirus (COVID-19).
Futures for the Dow Jones Industrial Average fell 1.29% in Tuesday pre-market trading, while the broader S&P 500 index declined 1.03% and those for the tech-heavy Nasdaq 100 shed 0.51%.
In an interview with the Financial Times, Stéphane Bancel said the high number of Omicron mutations on the spike protein and the rapid spread of the variant in South Africa suggest that existing vaccines may need to be modified, which could take months.
Stocks closed higher yesterday, recovering from hefty losses on Friday when news of the new COVID-19 variant broke and sent the Dow down over 1,000 points to post its biggest one-day decline this year.
On Monday, the Dow recouped 236 points, or 0.68% to close at 35,136, while the S&P 500 added 1.32% to 4,655 and the Nasdaq climbed 1.88% to 15,783.
“It only took one comment from the boss of drugs firm Moderna to derail markets once again. Stéphane Bancel said he believed existing vaccines would struggle with the Omicron variant, leading to a renewed sell-off in shares and oil prices,” said AJ Bell investment director Russ Mould.
“Markets hate uncertainty, and this is precisely what we have now. No-one knows how much trouble the new variant is going to cause, and so it seems plausible that we will see heightened volatility on the markets until there is adequate data to better understand the lay of the land.”