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The main catalyst that is driving down the market seems to be an accumulation in instances of COVID-19 (especially with respect to the Delta variant) and the option that the wave of infections may derail the global economic recovery.
Last week, the U. S. U. S. It recorded an average of 30,000 new instances of COVID over a seven-day period consistent with the period, up from an average of 11,000 a month ago. Meanwhile, oil costs fell after OPEC and its global allies agreed to begin phasing out production. cuts from August The new plan foresees a complete pullback of 5. 8 million barrels in line with the day of oil production until September 2022.
Related link: Should you worry about the Delta strain of COVID-19?
“The market liked the fall in covid and the accumulation of oil . . . getting what he wants,” Cramer tweeted.
However, Cramer suggested long-term investors look beyond the recent spike in COVID cases.
“I think where we are, there’s so much concern in the market, and I think asymptomatic [COVID] is rarely that dangerous, deaths spread so much. So I don’t think it’s the end of the market,” Cramer said.
Keeping the perspective: Ryan Detrick, market lead strategist at LPL Financial, said investors don’t forget to keep selling in the market in perspective.
Peter Essele, head of investment control at commonwealth financial network, said the drop in yields on 10-year U. S. Treasuries to near year-highs on Monday indicates the market’s collective flight to safety.
“Fear of stagflation will be a major fear for investors if a resurgence of COVID infections leads to a slowdown in economies as customer costs continue their upward trajectory. The strong functionality of inflation-indexed bonds in recent times is possibly an indication that those fears are being installed, as the bus has already left the station,” Essele said.
Benzinga’s view: It’s scary when the market drops 1. 4% in a day without getting married, but existing COVID-19 vaccines have proven incredibly effective against all variants of the virus, and the World Health Organization has said that the maximum number of vaccines for other people who control positive for the COVID delta strain are asymptomatic.