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US stocks slumped on the news of the first omicron case confirmed by CDC

The three benchmark indices gave up an early gain and closed in red as the Centres for Disease Control and Prevention (CDC) confirmed the first omicron case in the U.S. The Dow Jones Industrial Average fell 1.34% after it gained 520 points in the early session, S&P 500 was down 1.18%, and Nasdaq slid 1.83% after it rose 1.8% at the intraday high. The small-cap Russel 2000 slipped 1.81%.

The travel relating stocks have got hammered by the news. Delta Air Lines, American Airline Group Inc., and Norwegian Cruise Line Holdings all plunged more than 6%.  The big cap companies also fell on the news. Tesla Motor slid 3.75%, Advanced Microsoft Devices tumbled 5%, and Nvidia was down 3%. The Facebook parent company, Meta Platforms slipped 3.8%. The company was ordered to sell Giphy, the popular GIF-making and sharing website, by UK regulator one day ago. 

Some analysts indicate the recent stock's selloff is also caused by tax-loss selling as some investors have gained elsewhere. The losses in selling stocks can reduce the liabilities pay the taxes on gains. A number of tech stocks have plunged between 40%-60% since late October resulting from the poor third-quarter earnings and the weak fourth-quarter guidance. Twitter, PayPal, and Zoom are among these losers.

At the data front, the U.S. ADP's private payroll added 534,000 in November, more than the expectation at 525,000 which indicates the Friday Non-farm payroll number could be again at its strong recovering pace. The strong job number strengthened the Fed to speed up the tightening monetary cycle. The Fed Chairman Powell says the bond-buying tapering could be accelerated in the backdrop of ongoing burning inflation and a fast-recovering labor market. 

The 10-year U.S. Treasury yield fell to 1.42% after it rose to 1.5% at the highest in the session.

The Crude oil price slumped further as a risky asset. The WTI futures price was down 1.25%, to $65.35.

Gold futures consolidate around $1,780 per ounce. 

VIX rose 18.94%, to 32.37.


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