Dow tumbles 423 points amid record COVID-19 cases and fading stimulus hopes

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  • US stocks fell on Monday amid a record surge in daily COVID-19 cases and an elusive stimulus deal that looks decreasingly likely to be struck prior to the upcoming presidential election.
  • US daily virus cases surpassed 80,000 on Friday and Saturday, representing new records.
  • The surge in COVID-19 cases comes amid reports that five people within Vice President Mike Pence’s inner circle tested positive.
  • While a fiscal stimulus deal has yet to be reached, White House advisor Larry Kudlow told CNBC on Monday, “talks have slowed down, but they’re not ending.”
  • Watch major indexes update live here.

US stocks fell on Monday amid a record surge in COVID-19 cases over the weekend and fading hopes of a stimulus deal being struck prior to next week’s presidential election.

On both Friday and Saturday, US COVID-19 cases surged past 80,000, representing new record highs as the third wave of the virus gets underway heading into the colder Winter months.

The surge in COVID cases comes amid reports that five people within Vice President Mike Pence’s inner circle tested positive for the virus, including his chief of staff Marc Short.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Monday:

  • S&P 500: 3,427.11, down 1.1%
  • Dow Jones industrial average: 27,913.06, down 1.5% (423 points)
  • Nasdaq composite: 11,494.27, down 0.5%

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In terms of a potential fiscal stimulus deal, talks aren’t over, but the potential for no deal to be made until after the January 20, 2021 inauguration day is increasing.

“Talks have slowed down, but they’re not ending,” White House advisor Larry Kudlow told CNBC on Monday.

In company news, German tech firm SAP plunged on Monday after it cut its 2020 financial outlook due to a slow recovery from the COVID-19 pandemic. Dunkin’ Brands jumped 18% after it confirmed reports that it’s in preliminary talks to be acquired by Inspire Brands for $8.8 billion. 

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Jack Ma’s Ant Group will go public in the biggest IPO ever, as it plans to raise $34.5 billion in a dual listing on the Hong Kong and Shanghai exchanges. 

Gold inched higher, rising as much as 0.2%, to $1,906.31 per ounce.

Oil prices tumbled. West Texas Intermediate crude fell as much as 3.6%, to $38.42 per barrel. Brent crude, oil’s international benchmark, fell 3.4%, to $40.36 per barrel, at intraday highs.

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