U.S. stock markets were under pressure on Monday as the recent surge in COVID-19 infections fueled fears of an economic slowdown.
New COVID-19 infections jumped 70% last week to around 30,000 per day as the Delta variant continued to spread. Deaths have risen to an average of 250 per day, mostly among unvaccinated people.
|Me: DJI||MEDIUM DOW JONES||33899.33||-788.52||-2,27%|
|I:COMP||NASDAQ COMPOSITE INDEX||14242.996861||-184.24||-1,28 %|
The Dow Jones Industrial Average fell more than 700 points, or 2.2%, while the S&P 500 and Nasdaq Composite fell 1.87% and 1.65% respectively. On Friday, major averages suffered their biggest single-day declines in a month.
|OF||DELTA AIRLINES, INC.||38.37||-1.70||-4,24%|
Actions related to reopening the global economy were under additional pressure, including Delta Air Lines Inc., Carnival Corp. and Las Vegas Sands Corp., fearing a resurgence of COVID-19 could cause virus-wary travelers to stay at home. Restaurants are also taking a hit.
|CAKE||CHEESECAKE FACTORY, INC.||47,76||-2.09||-4,19%|
|DRY||SHAKE SHACK||90,43||-2.30||-2,48 %|
|DRI||RESTAURANTS DARDEN, INC.||135,56||-6,28||-4,43%|
The sell-off in the stock markets prompted investors to seek safety in the US Treasury market, with the 10-year note yield falling 7 basis points to 1.22%, the lowest since mid-February.
|JPM||JPMORGAN CHASE & CO.||146,90||-4,92||-3,24%|
|BAC||BANK OF AMERICA CORP.||36,87||-1.04||-2,74%|
In equities, rate-sensitive banks like JPMorgan Chase & Co. Bank of America Corp. and Citigroup Inc., were down.
|USE||UNITED STATES PETROLEUM FUND LP||46,46||-2,67||-5,43%|
|XLE||ETF SPDR ENERGY SELECT SECTOR||46,75||-1,97||-4,04%|
Meanwhile, energy companies were in the crosshairs as West Texas Intermediate crude fell from $ 2.62 to $ 69.19 a barrel after OPEC and its allies agreed to increase production. an additional 2 million barrels per day from August.
|ZM||ZOOM VIDEO COMMUNICATIONS, INC.||348.33||-13,63||-3,77%|
In the deals, Zoom Video Communications Inc. agreed to buy cloud-based call center operator Five9 Inc. for $ 14.7 billion in shares. The deal, which was struck at a 13% premium over Five9’s closing price on Friday, will pay Five9 shareholders 0.5533 Zoom shares for every Five9 share they own.
|JNJ||JOHNSON & JOHNSON||166,57||-1.55||-0,92 %|
Elsewhere, Johnson & Johnson is considering a plan that would put its baby powder and other talc-related operations at a new company that would then file for bankruptcy, Reuters reports, citing seven people familiar with the matter. Such a decision could result in lower payments for lawsuits not settled before filing for bankruptcy.
Overseas markets were in sharp decline.
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European stock markets fell sharply, with the German DAX 30 falling 2.68%, the French CAC 40 losing 2.48% and the UK FTSE 100 dropping 2.33%.
In Asia, Hong Kong’s Hang Seng index slipped 1.84%, Japan’s Nikkei 225 fell 1.25%, and China’s Shanghai Composite was little changed.