NEW YORK, Dec 17 — US stock indices were solidly lower in early trading today, suggesting a downbeat conclusion to an unpredictable week for equities amid Covid-19 concerns and a Federal Reserve policy shift.
Traders become increasingly worried about the spread of the Omicron variant and what it could mean for the US economic recovery as well as recent economic trends such as high inflation and supply chain snarls.
They also are pondering the fallout from the Fed’s decision Wednesday to accelerate shut off stimulus in March, which would open the door to rate increases sooner than expected to get a handle on inflation.
Markets rallied immediately after the central bank announcement, but fell in yesterday’s trading with tech shares taking the brunt, a trend that appeared to continue in the final session of the week.
About 20 minutes into trading, the benchmark Dow Jones Industrial Average was down 1.4 per cent at 35,386.96.
The tech-rich Nasdaq Composite Index lost 0.7 per cent to 15,064.94. The broad-based S&P 500 fell 1.0 per cent to 35,386.96.
Electric car maker Rivian fell 11.7 per cent after announcing a big quarterly loss following the market close yesterday, and saying production might fall “a few hundred vehicles short” of the 2021 target of 1,200 cars. — AFP
