Ayush Bansal
Wall street
Image: Finance yahoo
US stock indexes struggled for direction on Wednesday, cooling off after a day-earlier rally. As worries lingered around the Omicron variant of the coronavirus and its impact on global economic recovery. At 9:38 a.m. ET the Dow Jones Industrial Average was up 3.55 points, or 0.01 per cent, at 35,496.25, the S&P 500 was up 2.66 points, or 0.06 per cent, at 4,651.89 and the Nasdaq Composite was down 17.04 points, or 0.11 per cent, at 15,324.04.
With trading volume relatively light during the holiday-shortened week, investors have also continued to assess a multitude of developments on the Omicron variant and its potential impact on economic activity. These updates have come alongside expectations for tighter monetary policy next year from the Federal Reserve.
On Wednesday, the S&P 500 rose 1% to 4,696.56, the Nasdaq rose 1.2% to 15,521.89 and the Dow Jones Industrial Average rose 0.7% to 35,753.89. The Russell 2000, a measure of small-company stocks, rose 0.9% to 2,221.90.
The Commerce Department on Wednesday said the U.S. economy grew at a 2.3% rate in the third quarter, slightly better than previously thought. But prospects for a solid rebound going forward are being clouded by the rapid spread of the latest variant of the coronavirus.
Uncertainty over the latest variant’s impact on the economy is likely to cause more stock market swings.
Technology companies and a mix of retailers led the gains. Major indexes are still on track for a Christmas week gain, with trading thinning as the holidays approach. Many world markets will be closed Friday in observance of Christmas.
The latest surge in coronavirus cases because of the omicron variant has been hanging over markets. Along with concerns about rising inflation and its impact on economic growth.
Markets seem to be reposing their trust in companies, politicians, central bankers, and doctors to ensure Omicron doesn’t get in the way of fat investment returns and economic recovery. Wednesday’s U.S. data painted a picture of a highly resilient economy expanding at the fastest since 1984.
Pfizer
Pfizer (PFE) became the first drugmaker to receive authorization from the U.S. Food and Drug Administration for its COVID-19 pill. Which will allow users to treat the coronavirus at home amid the spread of Omicron.
Shares of Pfizer gained more than 2% in intraday trading Wednesday afternoon following the announcement.
U.S GDP
U.S. gross domestic product increased at a 2.3% annualized rate during the July through September quarter, according to the third and final estimate from the Bureau of Economic Analysis.
This was upwardly revised from the 2.1% rise previously reported. Still, it marked a deceleration from the 6.7% jump posted in the second quarter, and the 6.3% advance in GDP posted in the first three months of the year.