Investors hoping for a Christmas Week "Santa Claus rally" will have to wait, as all three major indexes logged their third-straight loss today. The fast-spreading omicron variant -- with cases climbing in the U.S. and abroad -- stoked fear among traders. The Dow fell 433 points and was off by as many as 550 points at session lows. Meanwhile, the Cboe Market Volatility Index (VIX) logged its third-straight daily win and highest close since Dec. 6.
Also weighing on investors' minds was news that Goldman Sachs (GS) cut the United States' gross domestic product (GDP) outlook. The adjustment came after Senator Joe Manchin announced he would not support the Biden administration’s current iteration of the “Build Back Better” spending plan.
The Dow Jones Average (DJI - 34,932.16) fell 433.3 points or 1.2% for the day. Merck (MRK) led the gainers, adding 1%, while Travelers (TRVL) paced the laggards with a 3% fall.
The S&P 500 Index (SPX - 4,568.02) shed 52.6 points or 1.1% for the day. Meanwhile, the Nasdaq Composite (IXIC - 14,980.94) shaved off 188.7 points, or 1.2% for the day.
Lastly, the CBOE Volatility Index (VIX - 22.87) added 1.3 points or 6% for the day.
OIL, GOLD PRICES TUMBLE AS OMICRON FEARS WEIGH
Oil prices fell on Monday, with traders concerned about the impact the new variant could have on demand, as countries across the world consider implementing new restrictions. Senator Joe Manchin's refusal to support to President Joe Biden's spending bill did little to help matters. In turn, January-dated crude fell $2.63, or 3.7%, to finish at $68.23 per barrel.
Gold prices also settled lower, as investors continued to fret over higher interest rates. A lack of liquidity also weighed on the yellow metal. In response, February-dated gold shed $10.30, or 0.6%, to close at $1,794.60 per ounce.
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