The S&P 500 pulled back on Monday as investors remained cautious about how the omicron variant will impact the economy and what the Federal Reserve will announce on Wednesday.
The Dow Jones Industrials plummeted 288.04 points to 35,682.95, dragged down by a 2% drop in Boeing’s stock
The S&P 500 index dropped 36.18 points to 4,675.84.
The NASDAQ sank 193.88 points at 15,436,72.
Reopening plays like airlines and cruise lines were some of the biggest losers on Monday. American Airlines fell 4% and Delta Air Lines dropped 3%. Carnival Corp. ticked 4% lower.
On the positive side, Moderna shares rose 5% a day after the White House’s top infectious disease expert Dr. Anthony Fauci called COVID booster shots “optimal care,” but said the definition of fully vaccinated would not change.
Israeli researchers at the Sheba Medical Center and the Health Ministry’s Central Virology Laboratory concluded on Saturday that the three-shot course of the Pfizer-BioNTech COVID-19 vaccine was effective against the new omicron variant. Pfizer shares rose 4%.
As of Sunday, the U.S. was approaching 800,000 coronavirus-related deaths. The new variant has pushed some government officials to reinstate health restrictions to slow the spread.
Prices for 10-year Treasurys popped, dropping yields to 1.41% from Friday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil prices lost 37 cents to $71.30 U.S. a barrel.
Gold prices added $4.70 to $1,789.50 U.S. an ounce.