Asian Stocks, U.S. Futures Plunge in the Wake of Manchin and the Pandemic

Asian stocks, crude oil, and U.S. equity futures plummeted on Monday, fueled by Senator Joe Manchin’s decision to veto the Build Back Better Act, in addition to Omicron-spurred restrictions.

While Asia-Pacific equities and treasury yields took a hit, gold and dollar experienced an upswing, undeterred by the current unsteady market conditions. Senator Manchin’s move to block the $1.5 trillion package has upended Democrats’ plans to achieve a more pro-social and climate-friendly economy. This has induced a drop in the U.S. economy forecasts released by Goldman Sachs.

According to Robert Schein, the Chief Investment Officer at Blanke Schein Wealth Management, the Omicron variant continues to pose a major threat to the market in the wake of increasing cases. “Investors should be prepared for Covid to continue to be a main factor in market performance heading into 2022. After the bull run we’ve seen over the past 21 months, investors aren’t as used to prolonged periods of volatility,” he said.

Stocks around the world also fell with shrinking assistance from central bank stimulus as it prepares to curb inflation. Additionally, Bitcoin has dwindled with decreasing speculative investments as the year draws to a close.

©Photo: Bryan R. Smith / AFP