COVID Variant, Lockdown Fears Behind Dow ‘s Worst Day in 2021

US shares dropped on Friday, with global markets rattled by a new coronavirus variant discovered in South Africa, which fanned concerns that new growth-crushing lockdowns could be imposed.

Trading volumes were low due to the Thanksgiving holiday in the US, which contribute to the market’s volatility. Major benchmarks fell sharply at the opening bell, indicating Wall Street was in for a rough abbreviated post-Thanksgiving session.

The Dow plunged 1000 points, or 2.8%, around midday, for its worst day in the year, while S&P 500 and Nasdaq also fell sharply.

A new coronavirus variant has been discovered in South Africa, leading to an emergency session of the World Health Organization.

Scientists say the new B.1.1.529 strain a concern, because it harbors a large number of mutations found in other variants, including the fast-spreading Delta variant that exploded over much of the summer, and it seems to be rapidly spreading.

While there’s no evidence yet, health officials are worried that the mutating variant could dilute or resist the efficacy of vaccines.