Dow posts biggest single-day drop this year as COVID-19 worries resurface
Oil tumbles as OPEC, allies reach deal to raise production
U.S. stock markets suffered among their steepest single-day declines of the year on Monday as the recent rise in COVID-19 infections stoked fears of an economic slowdown.
New COVID-19 infections jumped 70% last week to about 30,000 a day as the Delta variant continued to spread. Deaths rose to an average of 250 a day, mostly in unvaccinated people.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
I:DJI | DOW JONES AVERAGES | 38790.43 | +75.66 | +0.20% |
SP500 | S&P 500 | 5149.42 | +32.33 | +0.63% |
I:COMP | NASDAQ COMPOSITE INDEX | 16103.44802 | +130.27 | +0.82% |
The Dow Jones Industrial Average fell 724 points, or 2.09% the worst session of 2021. While the S&P 500 and the Nasdaq Composite declined 1.58% and 1.06%, respectively, the worst drop since May.
Selling in the equity markets caused investors to seek safety in the U.S. Treasury market with the yield on the 10-year note falling 10 basis points to 1.18%, the lowest since March of 2020 as tracked by Dow Jones Market Data Group.
In stocks, rate-sensitive banks, like JPMorgan Chase & Co. Bank of America Corp. and Citigroup Inc., were lower.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
JPM | JPMORGAN CHASE & CO. | 192.66 | +2.36 | +1.24% |
BAC | BANK OF AMERICA CORP. | 36.01 | +0.60 | +1.69% |
C | CITIGROUP INC. | 58.63 | +1.02 | +1.77% |
Stocks tied to the reopening of the global economy were under extra pressure including Delta Air Lines Inc., Carnival Corp. and Las Vegas Sands Corp., amid concerns a COVID-19 resurgence could cause virus-wary travelers to stay home. Restaurants also taking a hit.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
DAL | DELTA AIR LINES INC. | 43.47 | +0.35 | +0.81% |
CCL | CARNIVAL CORP. | 16.19 | -0.07 | -0.43% |
LVS | LAS VEGAS SANDS CORP. | 50.62 | -0.41 | -0.81% |
SHAK | SHAKE SHACK | 104.79 | +1.10 | +1.06% |
Meanwhile, energy companies were in the crosshairs as West Texas Intermediate crude oil tumbled $5.39 to $66.42 a barrel, the lowest since May 28, after OPEC and its allies agreed to raise production by an additional 2 million barrels per day beginning in August.
In deals, Zoom Video Communications Inc. agreed to buy cloud-based call center operator Five9 Inc. for $14.7 billion in stock. The deal, which was done at a 13% premium to Five9’s closing price on Friday, will pay Five9 shareholders 0.5533 Zoom shares for each Five9 share they own.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
ZM | ZOOM VIDEO COMMUNICATIONS INC. | 66.23 | +0.27 | +0.41% |
FIVN | FIVE9 INC. | 61.26 | +1.36 | +2.27% |
Elsewhere, Johnson & Johnson is considering a plan that would put its Baby Powder and other talc-related operations into a new business that would then file for bankruptcy, Reuters reports, citing seven people familiar with the matter. Such a move could result in lower payouts for lawsuits not settled before a bankruptcy filing.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
JNJ | JOHNSON & JOHNSON | 156.76 | -1.42 | -0.90% |
Overseas markets were sharply lower.
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European bourses were sharply lower with Germany’s DAX 30 slipping 2.62, France's CAC 40 losing 2.54% and Britain’s FTSE 100 falling 2.34%.
In Asia, Hong Kong’s Hang Seng index slid 1.84%, Japan’s Nikkei 225 tumbled 1.25% and China’s Shanghai Composite was little changed.