Wall Street in fear of the nu variant or even the South African variant, confirms the strong bearish wave that emerged in the premarket. At 15.50 Italian time, the Dow Jones collapsed by about 900 points (-2.5%), to 34.942 points; the Nasdaq lost more than 220 points (-1.41%) to 15,623 points; the S&P 500 capitulated by more than 82 points (-1.75%), to 4,618.
Panic over global equities over news related to the discovery of the Nu variant in South Africa.
The flight from risk is counterbalanced by the purchase of assets considered safer, such as Treasuries. The 10-year rates thus plummet to 1.516% after climbing above 1.65% this week.
According to experts, the new variant, called B.1.1.52 and also baptized as “super South African”, would present 32 different mutations in the spike protein. The World Health Organization (WHO-WHO) has called an extraordinary meeting for today.
The United Kingdom has already taken action, closing the borders to six African countries: in addition to South Africa, flights from Namibia, Lesotho, Eswatini, Zimbabwe and Botswana have been suspended.
Belgium has reported at least one variant case in the country. On Wall Street, stocks related to the travel and tourism sector fell mainly.
Male Boeing and airline stocks, which are discounting the risk of seeing a new drop in bookings and news of the temporary suspension of flights by the United Kingdom from the six African countries mentioned above.
Boeing has slipped by more than -7%, Delta Air Lines, United Airlines, American Airlines are all down with drops of up to -9%.
Conversely, the stocks of companies that would benefit in particular from the reintroduction of various restrictions and lockdown measures, such as the video chat application Zoom + 6.6%, or the indoor cycling company Peloton + 2.7% or even the giant of Netflix streaming.
Among other stocks, focus on Didi: the prices of the so-called Chinese Uber – private transport company – are losing 5% in the wake of some rumors, according to which Beijing is aiming to delist the group’s stock which landed this year on Wall Street.
It is not the first time that the title has paid the threats of the Chinese government, which this year has targeted several Big Tech made in China with allegations of alleged or possible violations of the rules on privacy and competition. Yesterday, Didi closed the Wall Street session at $ 8.11, down 42% from its July IPO price of $ 14.
Watch out for the Nasdaq Golden Dragon China Index – an index that tracks 98 Wall Street-listed companies that do most of their business in China -, which dropped by 30% this year, and by 48% from the record tested in February.