Stocks sink on new COVID variant; Dow Jones loses 890 points

The Associated Press

NEW YORK (AP) — Stocks fell sharply Friday arsenic a caller highly transmissible coronavirus variant from South Africa appeared to beryllium spreading crossed the globe, threatening months of advancement astatine getting the pandemic nether control.

Health officials successful Europe and the U.K. moved rapidly to suggest suspending aerial question from confederate Africa. Meanwhile cases of the variant were recovered successful Hong Kong, Belgium and Tel Aviv arsenic good arsenic large South African cities similar Johannesburg.

The Dow Jones Industrial Average dropped much than 890 points aft an hr of trading to 34,917. The S&P 500 scale was down 1.9%, connected gait for its worst time since precocious September. The Nasdaq Composite was down 1.7%.

There person been different variants of the coronavirus earlier — the delta variant devastated overmuch of the US passim the summertime — but aboriginal information connected this variant appears to amusement it’s much easy transmissible than different variants.

“Investors are apt to sprout archetypal and inquire questions aboriginal until much is known,” Jeffrey Halley of Oanda said successful a report. That was evident from the enactment successful the enslaved market, wherever the output connected the 10-year U.S. Treasury enactment fell to 1.51% from 1.64% connected Wednesday. The enslaved marketplace was closed Thursday successful the U.S. for Thanksgiving.

The economical impacts of this variants were already being felt. Flights betwixt South Africa and Europe were being taxable to quarantine oregon being unopen down altogether. Airline stocks were rapidly sold off, with Delta Air Lines, United Airlines and American Airlines falling astir 9% each.

Oil prices besides fell sharply, plunging astir 8%.

Investors, fearful of much lockdowns and question bans, moved wealth into companies that mostly benefited from erstwhile waves, similar Zoom Communications for meetings oregon Peloton for at-home workout equipment. Peloton shares were up 3% portion Zoom was up much than 8%.

Shares successful the coronavirus vaccine manufacturers were among the biggest gainers arsenic well. Pfizer shares roseate astir 7% portion Modern shares jumped much than 22%.

Merck shares were down 5%, however. While U.S. wellness officials said Merck’s experimental attraction of COVID-19 was effective, information showed the pill was not arsenic effectual astatine keeping patients retired of the infirmary arsenic primitively thought successful the data.

Stock trading the Friday aft Thanksgiving is typically the slowest time of the year, with the marketplace closing astatine 1 p.m. Eastern. The airy trading could exacerbate immoderate of Friday’s losses with less buyers and sellers.