Stocks tumbled Tuesday, reversing Monday’s rebound on Wall Street, as investors reassessed risks associated with the new Covid variant, omicron.

Major averages dropped to their session lows after Federal Reserve Chairman Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting.

The S&P 500 shed 1.9% to 4,567.00. 

On Wednesday, investors will be evaluating updates on the omicron variant, as well as some key economic reports. November’s Manufacturing PMI, ISM Manufacturing print and October’s construction spending are set to release on Wednesday morning.

ADP’s private payroll data will be out at 8:15 a.m. Economists polled by Dow Jones expected 506,000 private jobs were added in November, down from October’s 571,000.

U.S. stock futures were higher in early morning trading on Wednesday, following a Tuesday sell-off on Wall Street over fears about the new omicron Covid variant and the Federal Reserve mulling a quicker-than-planned taper.

On Tuesday, the tech-focused Nasdaq Composite dipped 1.6%. 

Stocks hit their session lows when Federal Reserve Chair Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting. Despite the potential disruption of omicron, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month.

Expediting the removal of the Fed’s easy policies tells investors that the central bank is focusing on addressing inflation, instead of new threats from the pandemic.

Bond yields also retreated on Tuesday with the U.S. 10-year Treasury dropping 8 basis points to below 1.45% on mounting omicron fears.

Tuesday marked the final trading day of November, which proved to be a volatile month for stocks. 


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