In a painful start to the week for the Dow and the broader market, stocks tumbled at the opening bell in New York as investors worry when Washington will agree another stimulus bill.
Rising Covid-19 infections around the world as the colder seasons of the year are beginning are also weighing on the market.
The Dow was down more than 800 points, or 3%, in late-morning trading. The broader S&P 500 was down 2.5%. The Nasdaq Composite was down 2.3%.
All three indexes have posted three-straight weeks of losses. This week could be number four.
The Dow declined 591 points, or 2.1%, at 27,065, as of 9:49 a.m. Eastern time, and the Nasdaq composite was down 1.2%. In another sign of the increased worry, the yield on the 10-year Treasury fell to 0.65% from 0.69% late Friday.
Wall Street has been shaky this month, and the S&P 500 has pulled back about 9% since hitting a record Sept. 2 amid a long list of worries for investors. Chief among them is fear that stocks got too expensive when coronavirus counts are still worsening, U.S.-China tensions are rising, Congress is unable to deliver more aid for the economy and a contentious U.S. election is approaching.
Bank stocks had sharp losses Monday morning after a report alleged that several of them continue to profit from illicit dealings with criminal networks despite being previously fined for similar actions.
Bank stocks tumble on report of alleged illicit fund handling; Deutsche Bank defends itself
The Dow opened down 500 points, or 1.7%. The broader S&P 500 kicked off 1.5% lower, and the Nasdaq Composite fell 1.6%.
All three indexes have posted three-straight weeks of losses. This week could be number four.
European stock markets don’t look better Monday, selling off as virus numbers are on the rise.
While stocks are getting hammered, the US dollar, measured by the ICE US Dollar Index is up 0.5%. US Treasury bonds are also in high demand Monday, and the 10-year bond yield dipped to 0.66%. Bond prices and yields move opposite to one another.
The market jitters began with a sharp selloff, primarily in tech stocks, a few weeks back. Since then, supportive monetary stimulus from the Federal Reserve, gridlock in Washington over a next stimulus bill, the impending election and the lack of viable investment alternatives after the big stock market rally of the summer have been pulling investors into different directions.
