Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Covid-19 Fears Spark Early Wall Street Sell-Off; Dow Down 450 Pts

Stock MarketsJul 19, 2021 09:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets fell sharply at the open on Monday, as a surge in Covid-19 cases across the U.S. and further afield drove a wave of risk aversion that hit most asset classes. 

By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was down 458 points, or 1.3%, at 34,229 points. The S&P 500 and the Nasdaq Composite were both down 1.2%, pulling away sharply from the record highs they had hit last week.

The move came after a weekend of ill-tempered exchanges between the Biden administration and social media giants, which illustrated the mounting concern in Washington about the spread of the Delta variant of Covid-19, a strain more than twice as contagious as earlier iterations of the virus. Infection rates are rising particularly strongly in the South and Midwest, where skepticism toward vaccines - and to most policies advanced by the Democratic administration - is highest.  The number of new cases across the U.S. hit its highest single-day level in over two months last week.

Ironically, Facebook (NASDAQ:FB) stock outperformed the general rout, despite being singled out for criticism by administration officials up to and including President Joe Biden for allowing the spread of misinformation about vaccination on their networks. Facebook was down 1.4%.

Oil stocks were among the biggest losers, as fears that the economic recovery will lose momentum and kill demand combined with news of an end to OPEC's internal quarrel over production quotas at the weekend, paving the way for some 2 million barrels a day of supply to be restored to world markets by the end of the year.

Occidental Petroleum (NYSE:OXY) stock fell 6.5%, while Exxon Mobil (NYSE:XOM) stock fell 3.2% and Chevron (NYSE:CVX) stock fell 3.0%, as U.S. crude futures tumbled below $70 a barrel for the first time in over a month.

Broader reopening plays also reversed sharply, with AMC Entertainment  (NYSE:AMC) stock falling over 10%, Carnival (NYSE:CCL) stock and Norwegian Cruise Line (NYSE:NCLH) stock falling over 6% each, and major airline stocks falling by between 4% and 7%. Financials were also hit as bond yields fell to their lowest in some five months, threatening to put fresh pressure on their lending margins. The yield on the United States 10-Year Treasury fell to its lowest since February at 1.21%. Wells Fargo  (NYSE:WFC) stock, Citigroup (NYSE:C) stock, Goldman Sachs (NYSE:GS) stock and Bank of America (NYSE:BAC) stock all fell over 3%.

Zoom Video (NASDAQ:ZM) stock couldn't escape the general selling despite agreeing a merger that pre-empts what some analysts had identified as a serious threat to its further growth. The videoconferencing company said at the weekend it would buy Cloud-based call center operator Five9 Inc (NASDAQ:FIVN) for some $15 billion in an all-stock deal. Zoom stock fell 4.3%, while Five9 stock rose 3.5%.

Among the few other stocks to stay in the green were vaccine-maker Moderna (NASDAQ:MRNA) which rose 3.5%, and defensive consumer plays Procter & Gamble (NYSE:PG) and Walmart (NYSE:WMT). 

Covid-19 Fears Spark Early Wall Street Sell-Off; Dow Down 450 Pts
 

Related Articles

Ford wakes up badly burnt from its India dream
Ford wakes up badly burnt from its India dream By Reuters - Sep 17, 2021 2

By Aditi Shah NEW DELHI (Reuters) -When Ford Motor (NYSE:F) Co built its first factory in India in the mid-1990s, U.S. carmakers believed they were buying into a boom - the next...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (20)
Paul Richard
Paul Richard Jul 19, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oh no, there goes all my profits for what the past year, 5 years, 10 years, 25 years. Oh for just the PAST MONTH! idots.
Mark Stallone
Mark Stallone Jul 19, 2021 11:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
RELAX. It's all part of Building Back "Better".
William Bailey
William Bailey Jul 19, 2021 10:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is just the start
pavel zissu
pavel zissu Jul 19, 2021 10:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Covit-19 Delta variant narrative replaces Fed on puting the breaks on a runaway market that did not justify it's value with unemployment still very high and inflationary pressure at the high in more than a decade.
Eudon Hickey
Eudon Hickey Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Those in the know, understand that Covid is the smoke screen to get attention away from the US Presidential election fraud coming out. Lot will go to jail, but many will face the treason & fire squad process
Michael Roal Casa
Michael Roal Casa Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
those in the know, get the vaccine and don't die.. Good luck and RIP to deniers
William Bailey
William Bailey Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kook. Hopefully you didnt get a vaccination
Darrell Peterson
Darrell Peterson Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tuning in the Tin Foil hat antenna to the paranoia channel , keep us all updated Wise One .
Darrell Peterson
Darrell Peterson Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tuning in the Tin Foil hat antenna to the paranoia channel , keep us all updated Wise One .
Josh Davis
Josh Davis Jul 19, 2021 10:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Darrell Peterson just a question for you to ponder but why all the hesistsncy from faucis own employees, healthcare workers, governmental employees, etc to receive said “vaccine” if it was safe and effective right? Just food for thought
Mitchel Pioneer
Mitchel Pioneer Jul 19, 2021 10:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And the cavalry arrives to put a floor under the losses.
Miriam Morkhul
Miriam Morkhul Jul 19, 2021 10:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Junk bonds also prior to sell off marked a yield below CPI inflation. Major pattern shift.
color trailer
color trailer Jul 19, 2021 10:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
down jone retest 28000 point.
Casador Del Oso
Casador Del Oso Jul 19, 2021 10:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this may be an underestimate.
Junior Moreno
Junior Moreno Jul 19, 2021 10:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Every time the CBOE SKEW index hit 138, the SP500 dropped 10% soon after. Whenever it hit 157, the SP500 dropped 20% immediately. On June 25, the SKEW hit a record 170, which proportionally indicates an immediate drop of the SP500 by more than 28%. More: In July 2020, the agency Fitch Ratings had already signaled a downgrade of the US rating due to its growing deficit. In 2011, when the US lost its AAA rating, the SP500 dropped 20%. In addition, the S&P 500 Shiller CAPE Ratio also hit a record high of 38.00 (a value only seen during the 2000 .com bubble crash) Most of the time when the Shiller exceeds > 30, the SP500 immediately drops with heavy violence. Gold also dropped suddenly more than 7% in June, no doubt because the big hedge funds, already anticipating the catastrophic collapse ahead, made cash by selling gold. With that cash on hand, they can buy the imminent collapse of the SP500. I expect until the end of July a rapid and violent drop in the SP500 of more than 40% in a few days.
Stan Smith
Stan Smith Jul 19, 2021 10:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Almost 800 pts down now. 'Bears roar' or are stocks just taking another 'breather'!!
YouTube Account
YouTube Account Jul 19, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not afraid of the flu (i.e. "covid"), but terrified of the liability-free, emergency use, experimental, gene-editing injection they are so keen to force into every man, woman, and child in the world. The people who run our governments are simply not trustworthy
Jacob Steinschlag
Jacob Steinschlag Jul 19, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah you definitely sound like a youtube account graduated from Youtuve University
YouTube Account
YouTube Account Jul 19, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jacob Steinschlag  and you sound like a child
Vlad Lozovskiy
Vlad Lozovskiy Jul 19, 2021 10:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How you all doing Biden voters?
Kyle Crookshanks
Kyle Crookshanks Jul 19, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not worried about covid here
Richard Basehart
Richard Basehart Jul 19, 2021 10:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I was never worried about Covid, I was and still am worried about what Gov does in name of Covid.
Steve Cohen
Steve Cohen Jul 19, 2021 10:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When the 30 year treasury goes under 1.8% the CTAs start buying!!!
James Gomez
James Gomez Jul 19, 2021 10:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Covid lol Yeah.....No
Jabie Bulie
Jabie Bulie Jul 19, 2021 10:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This sell has NOTHING to do with COVID, but rather the fragile economy with inflation hitting all time highs, mortage crisis, and joe biden in charge !!!!
christos rousakis
christos rousakis Jul 19, 2021 10:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
welcome 2000 points in one day comming
Edward Chong
Edward Chong Jul 19, 2021 10:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
try harder.
Leo Philip
Leo Philip Jul 19, 2021 10:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Since all other reasons like job loss, crude oil, taper worries and others have been put to rest, fund houses refound covid as a reason to pull market down.
James Andrews
James Andrews Jul 19, 2021 10:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Covid is OVER, buy the dip.
Steve Cohen
Steve Cohen Jul 19, 2021 10:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just not too early
simone scelsa
simone scelsa Jul 19, 2021 10:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The market is tremendously overvalued, buy the dip if you would like getting poorer
Stan Smith
Stan Smith Jul 19, 2021 9:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You forgot to mention that US inflation is running rampant...could be a critical factor??
Sudeep KV
Sudeep KV Jul 19, 2021 9:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
true
Steve Cohen
Steve Cohen Jul 19, 2021 9:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Especially as its chocking off the so called recovery
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email