COVID: Global markets fall after Moderna CEO casts vaccine efficacy doubts against Omicron

Stock markets across the globe have plunged after Moderna CEO expressed his doubts regarding the efficacy of vaccines against the Omicron COVID-19 variant. Moderna boss Stephane Bancel had told a media outlet that according to him, there would be a “material drop” in the effectiveness of the coronavirus vaccines after the new, highly-mutated variant of the SARS-CoV-2 was detected by South African scientists. 

While the symptoms of the Omicron variant have been mild so far, dozens of nations across the globe including India, the US, Canada and the UK have imposed travel restrictions as a precaution. Bancel told the Financial Times that the existing vaccines for COVID-19 would be less effective in resisting the new variant, B.1.1.529. He also noted that it would take months before the drugmakers could update the vaccines. He said, “There is no world, I think, where [the effectiveness] is the same level.”

However, following his remarks, Dow Jones Industrial Average and the broader S&P 500 share indexes in the US closed 1.9% lower. Additionally, the tech-focused Nasdaq lost 1.6%. BBC stated that the drop in share prices came after the chairman of the Federal Reserve Jerome Powell suggested that the emergence of the Omicron variant could further worsen the uncertainty around the economic recovery and inflation. 

Responding to a question, Powell had said that it was time to let go of the term “transitory” that he only used to describe the surging rates of inflation. He added that the Federal Reserve should consider reducing the bond purchases more quickly which is also the first step towards increasing interest rates. 

US market falls similar to Europe, Asia

Notably, the British media outlet stated that the fall in the American market coincided with a similar trend in Europe and Asia. Britain’s FTSE 100 share index, Germany’s Dax and France’s Cac 40 plunged over 1.5% each before they regained the values. Additionally, pan-European Stoxx 600 reduced 1.5% and hit the lowest level in nearly seven weeks. While the Australian dollar hit the lowest value in a year, Tokyo’s Nikkei index also closed down 1.6%. Even the prices of crude oil fell around 3%.  

(IMAGE: AP)