Dow Drops 800+ as September Selloff Continues - InvestingChannel

Dow Drops 800+ as September Selloff Continues

Stocks swooned on Monday as fears about the worsening coronavirus as well as uncertainty on further fiscal stimulus rattled traders.

The Dow Jones Industrial Average slid 815.02 points, or 3%, to 26,842.40. Monday’s decline put the Dow on pace for its worst day since June 11, when it plunged more than 6%.

The S&P 500 dipped 72.73 points, or 2.2%, to 3,246.74.

The NASDAQ ditched 160.09 points, or 1.5%, to 10,633.19.

The S&P 500 is down more than 7% in September and the Dow has lost 6%. The NASDAQ has tumbled 10.3% month to date and has re-entered correction territory.

Concerns over another wave of coronavirus cases came as the U.K. reportedly considers another national lockdown to stop an increase in coronavirus infections.

Here in the U.S., stocks that would be hit hardest from another lockdown declined. Share of Carnival Corp. were off by 6.9%. Southwest Airlines lurched lower 7.1%, and Delta Air Lines fell 8.9%.

In Washington, negotiations for a new coronavirus stimulus bill could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. Trump said he would nominate someone this week to take Ginsburg’s seat. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired.

Technology shares — which led the broader market off its coronavirus lows and into record territory, but have been hit hard so far in September — struggled once again. Apple, Microsoft and Amazon were all off by at least 1.6%. For the month, Apple was down 18% and Microsoft lost 12.5%. Amazon has dropped 16.3%.

Bank stocks also contributed to the broader market drop after a report that found a number of global banks allegedly moved illicit funds. Shares of Deutsche Bank dropped 8.3%, while JPMorgan Chase fell 2.8%.

Meanwhile, tensions between the U.S. and China keep escalating. China’s Ministry of Commerce released long-awaited provisions on its so-called “unreliable entity list,” a day after the U.S. announced a ban on WeChat and TikTok.

Prices for the 10-Year Treasury fell, raising yields to 0.66% from Friday’s 0.67%. Treasury prices and yields move in opposite directions.

Oil prices subtracted $2.26 to $38.85 U.S. a barrel.

Gold prices sank $63.30 to $1,915.80 U.S. an ounce.