Omicron restrictions loom

The S&P 500 fell 1.9 percent last week.

Still, Paul R La Monica at CNN noted that the “S&P 500 is up 23% this year and is just a little more than 1% from its record high”.

This is despite the rise of the Omicron variant of COVID-19 around the globe raising the possibility that countries may have to implement new lockdowns, a possibility that, he wrote, “might not be priced into the broader stock market just yet”.

Indeed, the Netherlands entered a strict new lockdown Sunday in response to fears over the spread of Omicron.

Meanwhile, in the UK, Health Secretary Sajid Javid said on Sunday that he could not rule out restrictions before Christmas while London Mayor Sadiq Khan said that new COVID-19 restrictions were “inevitable”.

In the US, businesses are already reacting to the spread of Omicron.

“Some Broadway shows in New York City have been canceled,” wrote La Monica. “And companies ranging from Apple and Ford to ridesharing firm Lyft and investment bank Jefferies have recently announced plans to delay workers' return to the office. More businesses are likely to follow suit.”