January 1, Stock Market Tumbles Amid Omicron Fears

Stocks tumbled on Monday as investors continued to wrestle with fears sparked by a resurgence of coronavirus cases from the omicron variant.

The Dow Jones Industrial Average fell 433 points, while the S&P 500 dropped 1.1%, and the Nasdaq Composite dipped 1.2%.

According to the Centers for Disease Control and Prevention, more than 156,000 cases were reported on Friday. The omicron variant has been found through testing in 43 states.

Energy stocks dipped as U.S. oil prices dropped more than 5%. Exxon Mobil fell 1.5%, and Devon Energy fell 2.4%.

Financial companies lost ground as well. Goldman Sachs was down 2.7%, JPMorgan by 1.8%, and Bank of America fell 1.6%.

According to experts, the market tumble reflects “growing uncertainty surrounding whether the Omicron surge will bring new widespread economic shutdowns, an unexpected shelving of additional fiscal stimulus from President Biden’s Build Back Better plan, and a breach by the S&P 500 index of its 50-day moving average,” said Jim Paulsen, chief investment strategist at the Leuthold Group.

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Stocks slide to start the week as omicron fears intensify, Dow falls 430 points