U.S. Stocks Moving Sharply Lower In Morning Trading
Stocks have moved sharply lower in morning trading on Monday, extending the downward move seen over the past several sessions. The major averages have all shown substantial moves to the downside.
The major averages have seen further downside in recent trading, hitting new lows for the session. The Dow is down 806.18 points or 2.9 percent at 26,851.24, the Nasdaq is down 245.72 points or 2.3 percent at 10,547.56 and the S&P 500 is down 84.30 points or 2.5 percent at 3,235.17.
The sell-off on Wall Street comes amid concerns about a renewed surge in coronavirus cases in Europe, with the U.K. reportedly considering another lockdown.
Prime Minister Boris Johnson is reportedly considering another national lockdown to act as a “circuit-breaker” to stop the spread of the virus, according to the BBC.
The death of Supreme Court Justice Ruth Bader Ginsburg may also be weighing on the markets, as a fight over the nomination of her replacement could lead to further delays in the passage of another coronavirus relief bill.
Republicans are pushing to replace Ginsburg before the November election despite blocking President Barack Obama’s nomination of Merrick Garland in an election year.
Airline stocks have shown a sharp move to the downside on the day, with the NYSE Arca Airline Index plunging by 7.9 percent.
Oil service stocks have also shown a particularly steep drop, dragging the Philadelphia Oil Service Index down by 7.1 percent.
The sell-off by oil service stocks comes as the price of crude oil has plunged, with crude for October delivery plummeting $1.61 to $39.50 a barrel.
Steel, chemical, and gold stocks are also seeing considerable weakness, moving lower along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday, with Japanese markets closed for a holiday. China’s Shanghai Composite Index fell by 0.6 percent, while Hong Kong’s Hang Seng Index plunged by 2.1 percent.
The major European markets have also moved sharply lower on the day. While the German DAX Index has plummeted by 3.7 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are down by 3.3 percent and 3.2 percent, respectively.
In the bond market, treasuries have moved notably higher amid the sell-off on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.3 basis points at 0.651 percent.
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