So this is what happens when a certain U.S. Senator withdraws his support from a crucial bill.  The Dow and Nasdaq drop like stones (attributed by Wall Street analysts to this man), Goldman Sachs trims it 2022 GDP forecast after his comments. The economic recovery groups take the biggest declines including financials and materials. Investors go on defense putting money into the safe sectors of consumer staples, real estate, and utilities.  11.4 billion shares change hands in this wild sell off.  One man did all this.  What will tomorrow bring? 

Mon  December 20, 2021  4:55 PM

Wall Street skids on Omicron worry, hit to U.S. investment bill

By Lewis Krauskopf and Shreyashi Sanyal, Anisha Sircar

DJ: 35,365.44  -532.20        NAS: 15,169.68  -10.75         S&P: 4,620.64  -48.03      12/17

DJ: 34,932.16  -433.28        NAS: 14,980.94  -188.74       S&P: 4,568.02  -52.62      12/20

Dec 20 (Reuters) - Wall Street's main indexes fell sharply on Monday as investors worried about the Omicron COVID-19 variant potentially undercutting the economic rebound and a critical setback to President Joe Biden's domestic investment bill.  Stocks sold off broadly as coronavirus cases surged in New York City and around the United States over the weekend, dashing hopes for a more normal holiday season. Britain's leader said he would take more steps to slow the spread of Omicron if needed, after the Netherlands began a fourth lockdown and as other European nations considered restrictions. read more

"I think (the stock market) is down over COVID fears and how those fears may extend the continuing supply-chain problems and how that will impact profits ... for companies,” Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. 

The Dow Jones Industrial Average (.DJI) fell 433.28 points, or 1.23%, to 34,932.16, the S&P 500 (.SPX) lost 52.62 points, or 1.14%, to 4,568.02 and the Nasdaq Composite (.IXIC) dropped 188.74 points, or 1.24%, to 14,980.94. 

The benchmark S&P 500 traded below its 50-day moving average, a key technical level.  Economically sensitive S&P 500 groups such as financials (.SPSY) and materials (.SPLRCM) were among the biggest sector decliners.  In a further knock to market sentiment, U.S. Senator Joe Manchin said on Sunday he would not support Biden's $1.75 trillion domestic investment bill, dealing it a potentially fatal blow. read more

Goldman Sachs trimmed its quarterly U.S. GDP forecasts for 2022 after Manchin's comments. read more  The developments came as the Federal Reserve decided last week to end its pandemic-era stimulus faster, with the central bank signaling at least three quarter-percentage-point interest rate hikes by the end of 2022.  Investors have taken a more defensive stance so far this month, with sectors such as consumer staples (.SPLCRS), real estate (.SPLRCR) and utilities (.SPLRCU) leading gains.  The S&P 500 remains up 21.6% so far in 2021.  “Given the strength of the market so far this year, in some ways you could see investors take some profits and look for greater clarity in the new year,” said Michael Arone, chief investment strategist at State Street Global Advisors.

In company news, Oracle Corp (ORCL.N) shares fell after the business software maker said it would buy electronic medical records company Cerner Corp (CERN.O) for $28.3 billion. read more 

Declining issues outnumbered advancing ones on the NYSE by a 4.38-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored decliners.  The S&P 500 posted two new 52-week highs and 11 new lows; the Nasdaq Composite recorded 13 new highs and 346 new lows.

About 11.4 billion shares changed hands in U.S. exchanges, below the 12 billion daily average over the last 20 sessions.