Stocks fell sharply on Monday as coronavirus infections jumped and negotiations for a fiscal stimulus package before the election came down to the wire…
The Dow Jones Industrial Average traded 424 points lower, or more than 1%. The S&P 500 slid 1.1% and the Nasdaq Composite dipped 0.5%.
The decline came amid a record surge in new coronavirus cases in the U.S. The country saw more than 83,000 new infections on both Friday and Saturday after outbreaks in Sun Belt states, surpassing a previous record of roughly 77,300 cases set in July, according to data from Johns Hopkins University. The data also showed the country has reported an average of 68,767 cases per day over the past seven days, a record.
White House chief of staff Mark Meadows said Sunday that the U.S. will not get control of the pandemic amid the surge in new cases.
Optimism also dimmed that the White House and Republicans could strike a stimulus deal with Democrats before the election. Meadows and House Speaker Nancy Pelosi in separate interviews accused each other of moving the goalposts on stimulus talks. White House economic advisor Larry Kudlow also told CNBC’s “Squawk Box” that talks had slowed down, but noted they are still ongoing.
“The market is likely to drift lower near term (first SPX support at 3,209) in the face of Stimulus disappointment … Virus resurgence, and intensifying Election uncertainty,” said Julian Emanuel, strategist at BTIG.
Stocks with the most to lose from rising cases and a stalled stimulus plan led the decline Monday. Royal Caribbean shares fell 5.7%. Delta fell 2.8%.
Tech stocks were also under pressure after SAP, one of the biggest software companies in Europe, saw its shares plunge more than 20%. The company warned that businesses are holding back from spending; it also cut its earnings and revenue estimates for 2020.
Microsoft shares dipped 0.8%. Oracle stock was down by 3.3%.
This week marks the last week of October and the final trading period before Nov. 3. Major averages are on track for…
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