Dow Falls 500 Points Amid Resurgence In Coronavirus Cases

The market fell sharply on Monday, extending its three-week losing streak as stocks took a hit from an uptick in new coronavirus cases, declining tech shares and deadlocked stimulus talks in Congress.


The Dow Jones Industrial Average was down 1.9%, around 500 points, on Monday, while the S&P 500 fell 1.2% and the tech-heavy Nasdaq Composite dropped 0.1%.

 

Stocks pared back some losses in the final hour of trading, but the S&P 500 posted its first four-day losing streak since February.

 

Market sentiment took a hit after both the U.S. and Europe saw a resurgence in coronavirus cases over the weekend: The U.K. is reportedly considering another lockdown, while countries like France and Spain have seen an alarming rise in new infections.

 

Fears that a second wave of coronavirus could lead to further government restrictions and lockdowns caused shares of companies that would benefit from a reopening of the economy—including airlines, cruise operators and retailers—to plunge.

 

What’s more, stocks declined thanks to uncertainty around the next coronavirus stimulus bill, which could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg over the weekend.

 

Trump said he would nominate someone to take Ginsburg’s seat by Friday or Saturday: That’s likely to cause a heated debate between Democrats and Republicans in Washington, meaning that an agreement on a new coronavirus relief bill now looks more unlikely than ever before the November election.

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