NEW YORK (Reuters) - Wall Street’s main indexes fell more than 1% on Monday, with economically sensitive and travel stocks leading declines, as a spike in global COVID-19 cases raised fresh concerns about slowing economic growth.
New infections surged in parts of Asia and England, while U.S. COVID-19 cases soared 70% last week, fueled by the Delta variant.
All 11 S&P sectors fell in early trading, with the so-called value stocks including financial, industrial, materials and energy dropping between 1.8% and 3.7%.
The banking sub-index sank 3.3%, tracking a fall in the benchmark 10-year Treasury yield to mid-February lows.
“Before the Delta variant started gaining traction, things were priced in for a very strong recovery,” said David Grecsek, managing director of investment strategy and research at Aspiriant in New York.
“What we’re seeing today is any data or news that’s going to upset that sort of serene, low-volatility-and-high-corporate-earnings scenario, the market is going to react to that.”