(MENAFN- Baystreet.ca) Market Selloff Worsens
U.S. stocks began the week deeply in the red as investors continued to move to the sidelines in September amid several emerging risks for the market.
The Dow Jones Industrial Average collapsed 695.51 points, or 2%, to 33,998.37, set for its biggest one day drop since July 19.
The S&P 500 suffered 92.2 points, or 2.1%, to 4,341.76.
The NASDAQ Composite withered 389.65 points, or 2.6%, to 15,654.32.
COVID cases proved a factor because of the delta variant remain at January levels as colder weather approaches in North America.
September has the worst track record of any month, averaging a 0.4% decline, according to the Stock Trader's Almanac. History shows the selling tends to pick up in the back half of the month.
Investors are also concerned about brinkmanship in D.C. as the deadline to raise the debt ceiling approaches. Congress returned to Washington from recess rushing to pass funding bills to avoid a government shutdown.
Stocks linked to global growth were down the most Monday. Ford and Carrier Global lost more than 3%. General Motors and Boeing fell about 2% each. Nucor steel shed 2.8%
Big bank stocks took a hit as the falling rates may crimp profits. Bank of America and JPMorgan Chase were each down more than 2%.
Amid Monday's selloff, a number of classic defensive stocks provided the broader market with some support. Walmart, Procter & Gamble and Merck all traded in the green. Pfizer rose 1.5% after the drugmaker said its Covid vaccine is safe and appears to generate a robust immune response in kids ages five to 11.
Meanwhile, airline stocks jumped higher in unison after news that the U.S. will ease travel restrictions for foreign visitors who are vaccinated against COVID. American Airlines rose 2%, while United and Delta both traded about 1% higher.
Prices for 10-Year Treasurys subsided, raising yields to 1.31% from Friday's1.30%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.43 to $70.54 U.S. a barrel.
Gold prices gained nine dollars to $1,760.40 U.S. an ounce.
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