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Wall Street Close: Stocks hit the skids on surging coronavirus and stimulus hopes fading

  • The Dow Jones Industrial Average lost 647.1 points, or 2.28%.
  • The S&P 500 fell 64.15 points, or 1.85%.
  • The Nasdaq Composite dropped 189.35 points, or 1.64%.

Following a bad start for European bourses, US stocks plunged on Monday in thinner trade, with the S&P 500 posting its biggest daily decline in four weeks.

Coronavirus cases have flared up and uncertainty about a fiscal relief bill in Washington soured the sentiment for a US economic recovery.

The United States, Russia and France set daily records for coronavirus infections.

The number of hospitalized Americans with COVID-19 jumped to a two-month high.

Confirmed global cases of COVID-19 has soared to 43 million according to the latest data compiled by Johns Hopkins University. The death toll has also climbed to 1.15 million.

Many European countries have been made to tighten restrictions on activity, while the US infections that have also skyrocketed past the prior peak of July have forced El Paso in Texas to ask citizens to stay at home for the next two weeks.

Meanwhile, US House of Representatives Speaker Nancy Pelosi spoke with Treasury Secretary Steven Mnuchin about COVID-19 relief legislation.

Yet, there is still no immediate prospect of a deal happening before Nov 3rd US Elections, not as far as the markets are concerned at least, despite upbeat rhetoric from US House Speaker Nancy Pelosi. 

  • Pelosi remains optimistic that an agreement can be reached before US election

Consequently, the Dow Jones Industrial Average lost 647.1 points, or 2.28%, to 27,688.47, the S&P 500 fell 64.15 points, or 1.85%, to 3,401.24 and the Nasdaq Composite dropped 189.35 points, or 1.64%, to 11,358.94.

Also, Wall Street's fear gauge VIX hit its highest in more than seven weeks as uncertainty grew over the Nov. 3 election.

Meanwhile, some 60 million Americans have voted in a record-breaking early turnout as Trump and Democratic challenger Joe Biden entered their final week of campaigning.

It was also one of the busiest weeks of the third-quarter earnings season. 

Markets are waiting for the results from mega-cap U.S. tech firms including Apple Inc AAPL, Amazon.com Inc AMZN , Google-parent Alphabet Inc GOOG and Facebook Inc FB, who together have been responsible for a major part of the US stock market's recovery from the pandemic lows, so far. 

S&P 500 levels

 

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