The U.S. stock market recorded its biggest two-day decline since October 2020. After the U.S. confirmed the first case of infection with the omicron mutant strain, traders assessed the latest developments in the epidemic. In the past two trading sessions, the S&P 500 index futures has fallen by 3.06%, the largest two-day drop since October 2020. Investors flock to the relatively safe bond market, pushing long-term bond prices up at the expense of falling yields. The closing price of the VIX panic index also hit its highest level since early February.

South Africa said the number of COVID-19 cases has almost doubled from Tuesday, and the number of cases infected with the new variant strain in the United Kingdom, Switzerland and Brazil has also risen sharply. Traders also evaluated the speech of Fed Chairman Powell. He once again emphasized that the Fed will control inflation and officials should consider accelerating the reduction.

The selling on Wall Street is mainly due to two key factors. The first is the relative hawkish stance of the Federal Reserve (FED). Fed Chairman Jerome Powell reiterated that it is appropriate to consider accelerating the pace of reducing asset purchase plans. Earlier this week, Powell no longer used the term "temporary" when explaining the average price growth in the United States.

The second is the first confirmed case of Omicron mutant strain (Omicron) in the United States. This may pose a certain degree of threat to the gradual reopening of the world. Obviously, some of the worst performing stocks are in the travel industry. The Russell 2000 index, which is dominated by small-cap companies, closed at its lowest level since August after a sharp drop of 2.34%.

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