After U.S. Thanksgiving, markets reopened on Friday, Nov. 26, 2021, to send the S&P 500 down by 2.27%. News that a new Covid-19 variant originating in Africa, dubbed B.1.1.529 is spooking markets.
Like history repeating itself from last year, energy stocks dropped as oil prices fell to Sept. 2021 lows. Airlines and cruise ships fell because the U.S. banned travel to any countries having traces of this variant. The severe drop in American Airlines (AAL), Delta (DAL), and Carnival (CCL) give investors another chance to build a travel vacation portfolio. As BioNTech (BNTX) investigates the variant, which will take two weeks, this sector has risks of high volatility.
Investors may bet that the existing vaccines and antiviral pills under development by biotechnology firms will work. Furthermore, BNTX and Moderna (MRNA) should not have fallen as much as they should have. The firms may forecast stronger vaccine sales as countries realize the current dose schedule is not enough.
Governments may review the need to drive another vaccine campaign. Healthy vaccinated individuals are being infected but do not need hospitalization. Still, the booster may improve the lower hospitalization rates. This would lift MRNA and BNTX stock higher from here.
Carnival and airline stocks are also at lows not seen since February. Consider trading them.
