|

New COVID-19 variant sends shockwaves through markets [Video]

DOW, S&P 500 sink as markets wary over new COVID-19 variant

The Dow Jones and S&P 500 suffered significant declines on Friday, as markets reacted to the news that a new strain of the COVID-19 virus had been discovered.

It was reported that the variant which was found in South Africa, is potentially vaccine-resistant, and this news has sent shockwaves through markets.

In a statement regarding the new discovery, WHO’s Technical lead on Covid-19, Maria Van Kerkhove stated that, “We don’t know very much about this yet. What we do know is that this variant has a large number of mutations. And the concern is that when you have so many mutations, it can have an impact on how the virus behaves”.

The Dow fell by as much as 1000 points, with the S&P 500 2.25% lower as of writing.

Gold prices also spiked, and were up by as much as $35 on the news.

UK’s FTSE 100 suffers biggest fall in 2021

In the United Kingdom, the FTSE 100 suffered its biggest intraday fall of the year, as it too reacted to the news of the new COVID variant.

The news prompted the UK government to temporarily suspend flights to and from six countries in the southern African region.

Regarding the travel suspension, UK Health Secretary Sajid Javid said that, “More data is needed but we’re taking precautions now. From noon tomorrow six African countries will be added to the red list, flights will be temporarily banned, and UK travelers must quarantine”.

Some of the countries impacted were South Africa, Namibia, Zimbabwe, Botswana, Lesotho and Eswatini.

London’s FTSE 100 closed 3.64% lower to end the week.


Author

Eliman Dambell

With over a decade in financial markets, Eliman brings an experienced and diversified point of view to market analysis. He covers current and historical macro trends to give insights on Metals, FX, Stocks, and Crypto.

More from Eliman Dambell
Share:

Editor's Picks

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.
 

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300. 

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month. 

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.