On Monday, stocks fell as investors worried about monetary policy, government stimulus initiatives, and the emergence of the omicron variant.
Using the renowned exchange-traded SPDR S&P 500 ETF Trust SPY as a proxy, Bespoke Investment Group experts find that the overall return in the Tuesday following a drop of 1% or more has been a gain of 0.9 percent. Since its inception in 1993, the S&P 500 ETF — one of the most popular ways to gain exposure to the whole basket of S&P 500 SPX components — has declined on a Monday 309 times.
On Monday, the S&P 500 index fell 1.1 percent to around 4,568, the Dow Jones Industrial Average DJIA, -1.23 percent down 433 points, or 1.2 percent, and the Nasdaq Composite Index COMP, -1.24 percent fell 1.2 percent.
Cathie Wood claims that stocks have corrected into ‘deep value area,’ and that she would not allow benchmarks to’ keep our strategies hostage.’
If history is any guide, that may bode well for market movement on Tuesday, but it may be a little ray of hope to market participants concerned that lower-than-usual volumes due to the Christmas holiday will worsen swings and amplify the turmoil in markets, which appears to be fueled in part by COVID concerns and governments around the world’s reaction to the spread of the highly communicable new strain.
Early findings indicate that only the COVID-19 vaccines developed by Pfizer PFE and German partner BioNTech BNTX and Moderna MRNA, -6.25 percent, when combined with a booster shot, are effective against infection with the new omicron variant, with other vaccines such as AstraZeneca’s AZN and Johnson & Johnson’s JNJ falling short.