Omicron Cases Emerge... US Stock Market Stumbles

Reversal to Decline After Initial Rise
Dow Plunges 1000 Points Intraday

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The Omicron COVID-19 variant has finally landed in the United States. News of the Omicron outbreak struck the U.S. stock market hard, causing major indices to show extreme volatility and plunge. The U.S. immediately strengthened entry requirements.

On the 2nd (local time), the U.S. Centers for Disease Control and Prevention (CDC) announced that the first Omicron case in the U.S. was confirmed in California. Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIAID), explained the Omicron outbreak directly during a White House briefing that day.

The arrival of Omicron devastated the U.S. financial market. On that day, the Dow Jones Industrial Average closed at 34,022.04, down 1.34%, the S&P 500 index fell 1.18% to 4,513.04, and the Nasdaq index plunged 1.83% to 15,254.05.

The Dow Jones index had risen to 35,000 during the session but fell nearly 1,000 points amid the Omicron shock, ending the day on a weak downward trend.

Meanwhile, the VIX, known as the fear index, surged 16%, and the 10-year U.S. Treasury yield, which was approaching 1.5%, dropped to 1.41%. A decline in Treasury yields means a rise in bond prices.

Chris Zaccarelli, Chief Investment Officer at Independent Advisor Alliance, explained, "Volatility is likely to be high in the short term. There is plenty of reason for investors to engage in panic selling."

The first U.S. Omicron case was a breakthrough infection. The individual had completed the Moderna vaccine series and traveled to South Africa before returning to San Francisco on the 22nd of last month and testing positive on the 29th. Subsequent detailed testing confirmed infection with the Omicron variant. Dr. Fauci stated that the patient is not hospitalized but is in isolation, "showing mild symptoms and recovering," cautioning against excessive concern.

Dr. Fauci added that all close contacts of the confirmed case were traced and all tested negative. He emphasized that more will be known about Omicron’s transmissibility in about two to two and a half weeks and urged response with booster shots. The confirmed case had not yet received a booster shot. Fauci also explained that although exact information is not yet available, the Omicron variant appears to be more contagious and may evade vaccine protection.

The U.S. plans to implement travel restrictions alongside confirming Omicron cases. Authorities have already instructed airlines to report contact information for travelers arriving from southern Africa as part of efforts to identify cases.

According to the CDC and senior White House officials, the COVID-19 testing window before boarding flights to the U.S., currently within three days, will be shortened to 24 hours. This measure applies to U.S. citizens and permanent residents as well. The CDC is also considering additional testing and a seven-day quarantine for travelers arriving in the U.S.

President Joe Biden urged against panic and, when asked about additional travel restrictions, said, "We will announce related measures tomorrow."

The New York Times reported that these measures will make it difficult for overseas travelers to enter the U.S., sharing stories of those who have already given up or are rushing to enter the country. Some speculate that depending on how the situation develops, comprehensive U.S. entry bans could be imposed.

This content was produced with the assistance of AI translation services.