US stocks went on a rollercoaster ride as investors continue to digest incremental omicron updates, geopolitical tensions increase as the US considers sanctions on Russia and China, and on added volatility from triple witching.
The Nasdaq recovered earlier losses and turned positive as some traders covered shorts. Trading will remain very choppy for the rest of the year as investors grapple falling trading volumes over the coming sessions.
Now that South Africa has been dealing with omicron for the last few weeks, traders are closely looking to see how much of an increase they have with hospitalizations and deaths. Friday’s South African COVID data provided some optimism as hospitalization rates declined as 1.7% of COVID cases were admitted to hospitals. Omicron was always viewed as more transmissible and optimism still remains that it might not cause more severe illness than delta. The Moderna and Pfizer vaccines appear to be holding up nicely against omicron and that should allow optimism that countries that are using those vaccines should not have waves that are too disruptive with severe restrictions.
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