Wake Up Wall Street (SPY) (QQQ): Delta is done, over to Omicron but is this sell off overdone?

Ivan Brian FXStreet

Here is what you need to know on Monday, November 29:

Delta may be finally on the way out but it might be replaced by another variant as Omicron, first identified in South Africa, is now being picked up globally. Whether this is a good or bad thing is as yet unknown. Will omicron be more transmissible but milder? That would be blue-sky thinking and more study is needed. What is known is that this creates some uncertainty and as we bang on here repeatedly, markets hate uncertainty. Markets are forward-looking and can plan with known good or bad news but not with uncertainty. So we will likely see some volatility for the next few weeks until more information on omicron becomes available. Friday was an aberration with reduced holiday volumes exaggerating the fall. Already Monday is seeing a strong rally. But Merck's (MRK) anti-viral pill may not be a silver bullet so covid fears remain elevated. Friday's big winners were all the vaccine makers, with Moderna (MRNA) the standout at +20%. For now, its all hands to the holiday season as demand for the new Spiderman movie sees ticket sites crash but AMC fails to pop. Black Friday retail sales were also slightly on the low side so retail stocks could struggle. Earnings from Big Lots (BIG), Kroger (KR) and Dollar General (DG) are up this week.

The dollar meanwhile eases back from its run, to 1.1276 now against the euro, Gold is back down to $1792, bitcoin at $57,300 and Oil is back up to $71.55.

See forex today

European markets are higher: Eurostoxx +2%, FTSE +1.6% and Dax +0.7%.

US futures are higher: S&P +0.7%, Dow +0.6% and Nasdaq +0.9%.

S&P 500 (SPY) Nasdaq (QQQ) top news

AMC, Spider-Man set for big opening with ticket sites crashing, see more.

Tesla (TSLA) after last quarter's "super hardcore" Elon Musk urges focus on costs for next quarter, see more.

Moderna (MRNA) says it could have a vaccine ready for omicron variant by early 2022, see more.

Merck (MRK) data for its antiviral pill for covid not as positive as first thought. Citi downgrades.

Reuters sees online sales of $11.3 billion on cyber Monday, a drop from last year.

Phoenix Motors Co (PEV) to IPO under ticker PEV. electric vehicle company, yes another one! Rivian (RIVN) is slowing as deliveries are delayed, see more.

Pfizer (PFE) JPMorgan raises the price target.

Adagio Therapeutics (ADGI) up 30% as the company says its covid vaccine candidate is likely to be effective against omicron variant.

Hertz (HTZ) up 8% on share buyback program of $2 billion.

Li auto (LI) up 8% on earnings beat on top and bottom lines.

Upgrades and downgrades

Source: Benzinga Pro

Economic releases

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.