Dow Loses 2.1% As Delta Variant Fears Spook US Stocks

Dow loses 2.1% as Delta variant fears spook US stocks

New York, (UrduPoint / Pakistan Point News - 20th Jul, 2021 ) :Wall Street stocks fell sharply Monday on revived worries about the coronavirus and its impact on global growth as governments enact fresh restrictions to counter the Delta variant.

The Dow Jones Industrial Average dropped 2.1 percent, or about 725 points, to 33,962,04 in its worst session of 2021.

The broad-based S&P 500 shed 1.6 percent to 4,258.49, while the tech-rich Nasdaq Composite Index declined 1.1 percent at 14,274.98.

The Delta variant has been in the headlines for weeks, but concerns grew after Los Angeles reimposed an indoor mask mandate over the weekend following a steady increase in Covid-19 infections and hospitalizations.

Australia and Vietnam are among the countries that have announced new restrictions in recent days, joining Japan, where a subdued Olympic Games will get underway in a few days without spectators.

Monday's rout reflects "cumulative effect" of recent headlines, said Art Hogan, chief strategist at National Securities.

"The market is focused on the coronavirus restrictions and what it means for economic activity. There is very strong muscle memory on what that means."While the losses were fairly broad-based, travel equities were an especially weak area for stocks. Carnival and United Airlines both dropped more than five percent, while Marriott International lost 3.1 percent and Expedia declined 3.8 percent.

Petroleum-linked shares were another losing realm, with ExxonMobil and ConocoPhillips both falling more than three percent as the latest agreement of OPEC+ producers to modestly boost output hit oil prices.