Wall Street set to open lower, ending three days of gains 

6.30am: US stocks seen opening down

US stocks are expected to open lower, ending three days of gains for equities on easing concerns over the severity of the new coronavirus (COVID-19) Omicron strain. Investors are now eyeing inflation data due for release on Friday to indicate the Federal Reserve’s next policy move.

Futures for the Dow Jones Industrial Average declined 0.35% in Thursday pre-market trading, while the broader S&P 500 index shed 0.36% and those for the tech-heavy Nasdaq 100 fell 0.45%.

Stocks headed into the green in Wednesday late afternoon trading after Pfizer said a third dose of its vaccine would be effective against the Omicron variant. 

The S&P 500 gained 0.3% to close at 4,701, while the Dow Jones edged 0.1% higher to 35,755 and the Nasdaq closed at 15,787, a 0.6% increase.

“We had a sharp sell-off on omicron on Nov 26th, a couple of really volatile days and then a steady march back to where we were before – now markets are seeking fresh direction and the path of least resistance appears to be sideways for a bit until there is a bit more known about Omicron, inflation and the Fed,” commented Neil Wilson, chief market analyst for markets.com.

“Tomorrow’s CPI inflation print for the US could upset the recent recovery – looks like 7% for annual inflation would not be far off the mark. This would cement the Fed’s hawkish pivot.”

Story by ProactiveInvestors