(MENAFN- Baystreet.ca) Dow Suffers Worst Drop Since October
U.S. stocks fell aggressively Monday on concern a rebound in COVID cases would slow global economic growth. The selling picked up as the session went on and the Dow Jones Industrial Average dropped the most since last October.
The 30-stock index capsized 725.81 points, or 2.1%, mercifully to end Monday at 33,962.04, in a broad-based rout that sent all 30 members lower. At one point during the session, the Dow was down 946 points before recovering some ground into the close.
The S&P 500 fell 68.67 points, or 1.6%, to 4,258.49, with energy and industrial sectors as the worst performers.
The NASDAQ faltered 152.25 points, or 1.1%, to 14,274.98, its fifth-straight day of losses and worst losing streak since October.
COVID cases have rebounded in the U.S. this month with the delta variant spreading among the unvaccinated. The U.S. is averaging nearly 30,000 new cases a day in the last seven days ending Friday, up from a seven-day average of around 11,000 cases a day a month ago, according to data from the Centers for Disease Control. Cases were already flaring up around the world because of the delta variant.
Airlines got hit as investors reassessed whether travel among consumers would live up to high expectations, with shares of United, Delta and American sinking about 5%.
Key stocks linked to global economic growth also fell. Boeing shed 5%, and General Motors and Caterpillar dropped more than 2%.
Energy stocks were among the worst performers, with ConocoPhillips off by more than 3%. Exxon Mobil lost 4%.
Yet certain defensive stocks gained amid the market selloff. Walmart and Procter & Gamble shares traded into the green, along with many utilities stocks.
Despite Monday's decline, the overall damage to the market remains tame. The S&P 500 is still just 3.5% below its record reached last week and investors are hoping more better-than-expected earnings results will put a bottom under the market.
A busy week of earnings is on deck, with nine Dow components set to report and 76 S&P companies will provide quarterly updates. United Airlines and American Airlines will report, as will social media companies Snap and Twitter. CSX, Johnson & Johnson, Coca-Cola, Honeywell, IBM, Intel and Netflix are also on the docket.
Prices for 10-Year Treasurys climbed, lowering yields to 1.19% from Friday's 1.30%. Treasury prices and yields move in opposite directions.
Oil prices slid $5.52 to $66.29 U.S. a barrel.
Gold prices demurred $2.80 to $1,812.20 U.S. an ounce.
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