The stock market opened lower on Tuesday, as fresh concerns about the new omicron Covid variant, with Federal Reserve chairman Powell warning that it could pose a risk to the economic recovery--not to mention complicate the inflation outlook--weighed on the market.
Existing treatments could be less effective against omicron.
Richard Drew is an Associated Press photographer.
The S&P 500 and the Nasdaq were both up, but the Dow Jones Industrial Average was down.
The stock market rebounded on Monday, after it plunged on Friday when concerns about the omicron variant sparked a selloff.
Powell said in prepared remarks before the Senate Banking Committee that Omicron poses downside risks to employment and economic activity.
The stock market took a further hit after several vaccine makers warned that existing vaccines may not be as effective against the new variant.
Stephane Bancel, CEO of Moderna, said in an interview with the Financial Times that there could be a drop in effectiveness of existing vaccines.
Travel and airlines led the market lower on Tuesday, while stay-at- home stocks like Netflix and Zoom both rose.
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The CBOE volatility index, which is Wall Street's preferred fear gauge, jumped again on Tuesday. It is close to reaching the level it was at last Friday.
The quote is crucial.
In his prepared remarks before testifying in front of the Senate on Tuesday, Fed chair Powell dropped the use of the word "transitory" in describing inflation and warned that elevated prices will linger "well into next year."
There's a problem.
Home prices slowed for the first time in over a year. The S&P CoreLogic Case-Shiller home price index shows that prices rose 19.5% in September, down from the annual gain in August. Home prices are still higher than they were a year ago due to high demand.
The stock market needs to rebound after Biden said there were no lock downs.
Moderna CEO predicts that existing Covid-19 Vaccines will be less effective against Omicron Variant.
