Stocks Losses Accelerate as U.S., Europe Battle Virus Resurgence
NEW YORK (Dispatches) - Stocks pointed sharply lower Monday as new data showed a jump in COVID-19 cases in both the U.S. and Europe. Restrictions tightened across major countries overseas, raising the specter of a further pullback in business operations and deeper anchor on global economic activity.
Losses accelerated around 11 a.m. ET, with the Dow dropping more than 650 points, or 2%. The S&P 500 and Nasdaq each also retreated sharply.
Shares of companies set to benefit from a broader economic reopening including airlines like American Airlines, cruise lines including Norwegian Cruise Line Holdings and hotels like Wynn Resorts sank. Shares of AstraZeneca, on the other hand, outperformed after the Financial Times reported that its COVID-19 vaccine candidate developed with the University of Oxford produced a robust immune response in elderly individuals.
The U.S. posted back-to-back days of record-high new virus cases over the weekend, with new virus cases topping 80,000 for each of Friday and Saturday. States in the West and Midwest have been hardest hit by the latest jump in cases.
France endured its own record-high day for new coronavirus cases on Sunday, when the country reported more than 52,000 positive cases over a 24-hour period. Two-thirds of the country became subject to a previously announced 9 p.m. curfew starting Friday night. In Italy, which hit a record-high for new cases last week, new business restrictions came into effect Sunday. Spain declared a state of emergency over the weekend, which also included a country-wide curfew.
"Markets ultimately care about the economic impact of pandemic news,” UBS economist Paul Donovan said in a note Monday morning. "Italy and Spain have followed France in adopting the ‘Buffy the Vampire Slayer’ approach (it is not safe to be out of doors after dark). This is obviously bad news for bars and restaurants, but more positive for supermarkets and home entertainment.”
Elsewhere, shares of Boeing, Lockheed Martin and Raytheon Technologies came under pressure in early trading after China said it would impose sanctions on the defense units of both companies, following the U.S. approval of a $1.8 billion arms sale to Taiwan last week. China, which considers Taiwan to be part of its territory, has not yet specified the sanctions that will be put into place.
Losses accelerated around 11 a.m. ET, with the Dow dropping more than 650 points, or 2%. The S&P 500 and Nasdaq each also retreated sharply.
Shares of companies set to benefit from a broader economic reopening including airlines like American Airlines, cruise lines including Norwegian Cruise Line Holdings and hotels like Wynn Resorts sank. Shares of AstraZeneca, on the other hand, outperformed after the Financial Times reported that its COVID-19 vaccine candidate developed with the University of Oxford produced a robust immune response in elderly individuals.
The U.S. posted back-to-back days of record-high new virus cases over the weekend, with new virus cases topping 80,000 for each of Friday and Saturday. States in the West and Midwest have been hardest hit by the latest jump in cases.
France endured its own record-high day for new coronavirus cases on Sunday, when the country reported more than 52,000 positive cases over a 24-hour period. Two-thirds of the country became subject to a previously announced 9 p.m. curfew starting Friday night. In Italy, which hit a record-high for new cases last week, new business restrictions came into effect Sunday. Spain declared a state of emergency over the weekend, which also included a country-wide curfew.
"Markets ultimately care about the economic impact of pandemic news,” UBS economist Paul Donovan said in a note Monday morning. "Italy and Spain have followed France in adopting the ‘Buffy the Vampire Slayer’ approach (it is not safe to be out of doors after dark). This is obviously bad news for bars and restaurants, but more positive for supermarkets and home entertainment.”
Elsewhere, shares of Boeing, Lockheed Martin and Raytheon Technologies came under pressure in early trading after China said it would impose sanctions on the defense units of both companies, following the U.S. approval of a $1.8 billion arms sale to Taiwan last week. China, which considers Taiwan to be part of its territory, has not yet specified the sanctions that will be put into place.