Local financial expert says omicron-induced market crash not cause for concern yet

ROCHESTER, N.Y. (WHEC) — News of the omicron variant is being blamed for Friday morning’s 900-point drop in the stock market. Shares tumbled as traders reacted to the concerning developments.

News10NBC talked to one local financial expert about what investors should know.

These experts say market-wise this is the worst day of this year for the Dow Jones Industrial Average, and it centers more on fear of the unknown.

Minutes after the opening bell stock prices fell drastically as the newly named omicron virus in South Africa became a major cause of concern for both scientists and investors. We talked to George Conboy, Chairman of Brighton Securities.

"It looks like those people who are selling in a panic today are afraid of economic lockdowns, more crushing of the economy, that kind of thing," Conboy said. "So stocks are largely off across the board in the U.S. today."

Conboy says although stocks prices took a plunge, others saw their prices rise accordingly. Companies such as flour maker General Mills, and Zoom.

"In addition, Thermo Fisher is up. They have operations here in Rochester. Thermo Fisher makes diagnostic tests. Peloton stocks are up. I think people assume that everyone will rush out and buy a Peloton, and stay home and work out," Conboy said.

He said we should learn more when the market opens on Monday.

"We’re going to find out if this variant is likely to cause more lockdown, more economic depression around the world, or in the U.S., or is it going to be just like the so-called delta variant that caused people to panic, but didn’t really cause a big impact for our economy. I think that’s more likely to be the case," Conboy said.

And when the market corrects itself?

"You’ll likely to see the stocks pop right back up not necessarily in one day, but over the course of two to three weeks as investors realize, ‘Gee we panicked for nothing,’ those pries will likely creep back," Conboy said.

Friday’s market trading session ended at 1 p.m., which prevented stock prices from dropping any further.