The Dow Jones Industrial Average's worst daily plunge of the year caused a split among market strategists on Friday. It was a good buying opportunity.
The index closed down more than 900 points, while the S&P 500 GSPC average declined 2.27%.
The markets fell as concerns of a new COVID variant first detected in southern Africa led to concerns about a new COVID variant in industrial stocks, financials and energy.
Simeon Hyman, ProShares Global Investment Strategist told Yahoo Finance Live on Friday that the buying opportunity is not as big as Delta was and that's why I think it's a little bit of a buying opportunity. The economic data of the last month was really strong - I mean, an all-time high ISM Services. Manufacturing was high. Retail sales were up 1.7%. Other strategists are warnings of trouble ahead.
I don't see it as a buying opportunity. Chapwood said that the market has been overvalued by 31% for a number of months. It's going to be a downward move in the coming years, going into 2022. This kind of valuation can't be justified for a long period of time. The strategist said something.
The Dow Jones Industrial Average declined more than 1,000 points during Friday's trading session.
Travel-related stocks were among the sectors that fell on Friday because of concerns of tighter restrictions and renewed lockdowns. Stay-at home trades rebounded: Zoom ZM, a video calling software maker, was up more than 7%. Peloton Interactive PTON, a fitness company, gained more than 5% during the shortened trading session.
"I think it is a reaction to the uncertainty," said Daniel Morris, chief market strategists and Co-Head Investment Insights Centre, BNP Paribas Asset Management Chief Market Strategist, on Yahoo Finance Live, later saying that we definitely are going into the winter and that we are anticipating the potential problems as opposed to waiting to see if they're confirmed. Pfizer PFE hit an all time high on Friday after a Citi analyst said the company is capable of producing a variant shot in 100 days.