Shares in the United States fell sharply at the open this Friday, with travel, banking and raw materials particularly hit by the liquidation that was generated after the discovery of a new variant of Covid-19, which is feared more resistant to vaccines.
The Industrial Average Dow Jones It fell 437.69 points, or 1.22%, to 35,366.69 units. The S&P 500 subtracted 36.83 points, or 0.78%, from 4,664.63 units and the Nasdaq Composite it lost 180.85 points, or 1.14%, to settle at 15,664.38 units.
Concerns about a new variant of Covid-19 fueled the steepest rally in short-term Treasuries since the pandemic hit, as investors sought safe-haven assets and reduced bets on interest rate hikes.
The return on two-year notes, a guide to short-term rate expectations in the United States, was down 12 basis points to a low of 0.51%, the steepest daily drop since Covid-19 first triggered shockwaves in world markets in March 2020.
The yield on 10-year benchmarks also fell 12 bps, the biggest drop since February this year, to about 1.53%, and that of five-year debt lost 14 basis points, to around 1.19 percent. . The return on bonds declines when prices rise.
As US bond trading recovered after the holiday of the Thanksgiving Day, the decline in yields reflected similar movements in European markets.
The news prompted some reduction in bets on rate hikes after the president Joe Biden He nominated Federal Reserve Chairman Jerome Powell for a second term on Monday.