Stock markets retreated owing to the selloff in cyclical stocks amid fresh worries about the Omicron variant arising just a day ahead of the Fed’s policy update

Updated time: 25 Jan, 2022, 13:41 (UTC+04:00)

Marker news

Stock markets retreated owing to the selloff in cyclical stocks amid fresh worries about the Omicron variant arising just a day ahead of the Fed’s policy update. Investors still expected that Fed’s announcement of tapering would move earlier than planned to curb inflationary pressures before it climbed unstoppably.

S&P 500 dropped 0.91% after closing at a high of 4,712.02.
Dow Jones slipped 0.89%
Nasdaq slumped the most, 1.39%.
Risk-off sentiment shook the bond yields, leading to the fall below 1.4%.

Stocks: Most sectors gave up gains.
Energy: affected by the decreased oil price as OPEC increases demand for Q1/2022 as fears of Omicron uncertainty.
Consumer discretionary: hit hard by Omicron-fueled fears.
Tech: Apple failed shy of recording a $3 trillion market value.
Semiconductor: fell with the decline in tech.
Bank: fell as lower interest rates adversely affected the banks’ earnings from loan products.

COVID-19 vaccine manufacturers – Pfizer, Moderna and Novavax gained after confirming that an additional shot could enhance better protection against the Omicron variant.

Crypto:
Hottest today is the Congressional hearing of Financial services between U.S lawmakers and the crypto industry finally took a constructive turn after countless previous meetings. Two parties were confirmed to try to understand each other with the least negative judgment about financial stability.

Central bank digital currency (CBDC) got updates with BIS Innovation Hub actively engaged in trials of the digital euro. The Reserve Bank of Australia has just also confirmed that wholesale CBDC could improve the efficiency in transactions, concluded from its 2-year investigation.

BTC price fell low to $45,672 but experienced traders believe the crypto coin could make a reversal pattern.

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