From the Wall Street Journal’s “Stock Futures, Oil Drop on Omicron Vaccine Concerns” posted early Tuesday:
U.S. stock futures fell and investors sheltered in government bonds after drugmakers raised concerns that Covid-19 vaccines won’t work as well against the new Omicron strain…
Investors are trying to parse the risk posed by the new strain. Drugmakers have raised concerns that existing vaccines might be less potent against Omicron, but a lack of concrete information so far is driving uncertainty, and with it, volatility in stock markets.
“Markets are kind of in a holding pattern where no one knows if this is going to be a problem or not,” said Mike Bell, a strategist at J.P. Morgan Asset Management. “Until we have evidence either way on whether the existing vaccines still work against Omicron it doesn’t make sense to make a big bet in either direction.
Charts: Yahoo!Finance sees a bearish relative strength index (RSI) pattern. As of 6:00 a.m., max pain was still at $157.50 with a mountain of calls at $160.