Major global stock indexes closed mixed on Wednesday as uncertainty over the surge in Omicron variant infections tempered optimism that harsh new curbs on business and travel may not be needed.
After a weak session in Asian shares, European stock markets traded mixed. The Dow Jones industrial average and S&P 500 index closed at all-time highs on strong U.S. retail sales. The Dow has risen six straight trading days, in the longest winning streak since a seven-session run from March 5-15 this year.
However, the Nasdaq Composite edged lower. Some early studies showing a reduced risk of hospitalization in Omicron cases have eased concerns over the travel disruptions and powered the S&P 500 to record highs this week. "The market started to recognize that the Omicron variant was in a strange way good news," said Jay Hatfield, founder and chief executive of Infrastructure Capital Management in New York. "It will burn itself out more rapidly because it's easily transmissible, but it's less likely to overwhelm overwhelmed the hospitals, even though arguably Omicron is going to be a headwind for at least the next month." While much of the economic optimism has centered on the United States, the main European stock index is up more than 16% so far this year, showing faith in a recovery from the depths of the COVID-19 crisis. The MSCI world equity index, which tracks shares in 50 countries, rose 0.04% as it hovered close to a five-week high hit in the previous session.