The Covid-19 omicron variant is not letting up. The Centers for Disease Control and Prevention (CDC) confirmed this afternoon that the nation's first case of the highly contagious new strain was identified in California, meaning the U.S. has officially joined a list of 23 countries where omicron has been reported.

In response, the Dow, S&P 500, and Nasdaq all promptly gave back their sizable midday gains and sank into the red. The former completed an over 461-point swing into negative territory, after trading up 520 points at its session highs. The 10-year U.S. Treasury yield erased earlier gains as well to finish lower, while Wall Street's "fear gauge," the Cboe Volatility Index (VIX), roared to life this afternoon to clock its first close above 30 since Jan. 29.

The Dow Jones Average (DJI - 34,022.04) shed 461.7 points or 1.3% for the day. Johnson & Johnson (JNJ) led the gainers, adding 1.4%, while Salesforce.com (CRM) paced the laggards with an 11.7% fall.

The S&P 500 Index (SPX - 4,513.04) lost 54 points or 1.2% for the day. Meanwhile, the Nasdaq Composite (IXIC - 15,254.05) fell 283.6, or 1.8% for the day.

Lastly, the CBOE Volatility Index (VIX - 31.12) added 3.9 points or 14.5% for the day.

OIL, GOLD MOVE IN OPPOSITE DIRECTIONS ON OMICRON HEADLINES 

In line with today's theme, the omicron news had oil prices erasing earlier gains to finish Wednesday in the red. Investors are concerned the new strain could impact economic activity and oil demand. They are also awaiting Thursday's decision from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) on production levels. In response, January-dated crude dropped 0.9%, or 61 cents, to close at $65.57. 

Gold prices scored a win, however, as coronavirus uncertainties reignited interest in the safe-haven metal. A softer U.S. dollar is also responsible for propping up the commodity. In response, February-dated gold added $7.80 or 0.4% to close at $1,784.30 for the day.