Worries about the pandemic continue in
Several athletes and more than 60 other non-athletes affiliated with the Games have tested positive. Fears are growing that, despite repeated tests, infections may spread.
The vaccination rollout has been slower in
The yield on the 10-year
The Dow Jones Industrial Average slumped 2.1% to 33,962.04, while the Nasdaq composite lost 1.1% to 14,274.98.
Airlines and other companies that would get hurt the most by potential COVID-19 restrictions took some of the heaviest losses, similar to the early days of the pandemic in February and
Even in the
Any worsening of virus trends threatens the high prices that stocks have achieved on expectations the economy will fulfill those lofty forecasts.
“It’s a bit of an overreaction, but when you have a market that’s at record highs, that’s had the kind of run we’ve had, with virtually no pullback, it becomes extremely vulnerable to any sort of bad news," said
He and other analysts are optimistic stocks can rebound quickly. Investors have been trained recently to see every dip in stocks as merely an opportunity to buy low.
“The valuations, they just got too frothy," he said. “There was just so much optimism out there.”
Besides the new variants of the coronavirus, other risks to the economy include fading pandemic relief efforts from the
Monday's selling pressure was widespread, with nearly 90% of the stocks in the S&P 500 lower. Even Big Tech stocks fell, with Apple down 2.7% and Microsoft 1.3% lower.
This week also brings a slew of earnings reports. Across the S&P 500, analysts are forecasting profit growth of nearly 70% for the second quarter from a year earlier. That would be the strongest growth since 2009, when the economy was climbing out of the Great Recession.
In energy trading, benchmark
In currency trading, the
AP Business Writers