Dow drops over 400 points amid stimulus talks, coronavirus concerns
Wall Street’s major averages closed sharply lower as investors looked to updates on a US stimulus deal, while weighing the impact of a continued increase in coronavirus cases.
On Monday, the Dow Jones Industrial Average dropped 410.89 points, or 1.44 per cent, to 28,195.42. The S&P 500 was down 56.89 points, or 1.63 per cent, to 3,426.92. The Nasdaq Composite Index decreased 192.67 points, or 1.65 per cent, to 11,478.88, Xinhua news agency reported.
All the 11 primary S&P 500 sectors pulled back, with energy down 2.1 per cent, leading the losses.
US-listed Chinese companies traded mostly lower, with seven of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.
US House Speaker Nancy Pelosi said on Sunday that the White House and congressional lawmakers must reach an agreement in 48 hours if they want to pass a new COVID-19 relief package before the presidential election in November.
Democrats and Republicans have tried for weeks to work toward a follow-up package to combat the economic effects caused by the COVID-19 pandemic. Yet the two sides remained far apart on certain issues.
Pelosi and Treasury Secretary Steven Mnuchin were slated to talk again Monday afternoon.
Market sentiment was also dented as coronavirus cases continued to surge.
The global COVID-19 caseload surpassed the milestone of 40 million on Monday, according to a tally by Johns Hopkins University. The United States reported more than 8.2 million cases and over 220,000 deaths, both the highest around the world.