US open: Stocks lower as surge in omicron cases spooks investors

Wall Street stocks were firmly in the red early on Monday as market participants monitored a resurgence in global Covid-19 cases due to the omicron variant.

As of 1505 GMT, the Dow Jones Industrial Average was down 1.54% at 34,821.82, while the S&P 500 was 1.33% weaker at 4,559.20 and the Nasdaq Composite came out the gate 1.26% softer at 14,977.95.

The Dow Jones opened 543.62 points lower on Monday, extending losses recorded in the previous session as a volatile week for the blue-chip index drew to a close.

With the omicron variant spreading ahead of the winter holiday season, as the strain has now been found in 43 out of 50 US states and roughly 90 countries, the number of Covid-10 cases has doubled in 1.5 to three days in areas with community transmission, according to the World Health Organization. US cases hit more than 156,000 on Friday, according to the Centers for Disease Control and Prevention.

As a result, the yield on the benchmark 10-year Treasury note slipped to 1.383% due to fears that the variant would decelerate the economic recovery and keep inflation high, while reopening plays like Royal Caribbean, United Airlines and Southwest all traded lower in early trading.

Going the other way, Moderna shares traded higher after the pharmaceutical giant stated its vaccine booster dose provided recipients with significant protection against omicron.

In the earnings space, Carnival posted an adjusted net loss of $2.0bn for the fourth quarter and Nike will update on recent trading after the close.

On the macro front, the Conference Board's November leading index increased substantially in November, fuelled by positive contributions from eight of ten components. According to the CB, in the six months ended 30 November, the leading economic index increased 4.6%, somewhat slower than the growth of 4.9% over the previous six months. However, strengths among the leading indicators remained widespread.

Also in focus, Democratic senator Joe Manchin has vowed not to back the White House's "Build Back Better" plan, likely killing the $1.75trn social spending and climate policy bill where it stands.