Stocks Retreat As Moderna CEO Says That Vaccines Could Be Less Effective Against Omicron
Virus Worries Return
S&P 500 futures are down by roughly 1% in premarket trading as traders worry that vaccines may not provide enough protection against Omicron.
Moderna CEO has recently stated that effectiveness of current vaccines would decline against Omicron. Meanwhile, Regeneron Pharmaceuticals stated that its antibody treatment could be less effective against the new variant of coronavirus.
It should be noted that no one has enough data to make final conclusions about the effectiveness of vaccines and treatments, and traders will have to wait a few weeks to see the results of the ongoing research.
Meanwhile, the market will remain sensitive to speculations about the severity of the disease caused by Omicron, its ability to compete against Delta, and the effectiveness of vaccines and treatments against the new variant.
WTI Oil Tries To Settle Below $67
WTI oil remains under pressure as oil traders worry that countries would introduce additional travel curbs to battle against the new variant of coronavirus.
In addition, Iran nuclear talks have resumed. While it remains to be seen whether U.S. or Iran are ready to compromise, the resumption of negotiations with Iran serves as a bearish catalyst for the oil market.
Energy-related stocks have lost some ground but performed reasonably well in recent trading sessions, despite the major sell-off in the oil markets. Today, they will find themselves under material pressure at the beginning of the trading session.
Treasury Yields Decline As Traders Rush To Safety
The yield of 10-year Treasuries has recently managed to settle below 1.50% and is currently trying to settle below 1.42% as demand for safe haven assets increases.
Traders’ bets on higher interest rates in the near term have significantly decreased as the yield of 2-year Treasuries declined from 0.65% to 0.45% in just three trading sessions.
It remains to be seen whether lower yields will provide enough support to rate-sensitive stocks, as premarket action indicates that most stocks will find themselves under pressure.
For a look at all of today’s economic events, check out our economic calendar.