Dow Plunges 700 Points, or 2.1%, on Worst Day of 2021 for Blue Chips

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The Dow Jones Industrial Average posted its worst day of 2021 on Monday and stocks ended broadly and sharply lower as investors turned to safe-haven assets and assessed how rising COVID-19 cases could affect the recovery economic in the United States and around the world.

Dow Industrials finished down 725 points, or 2.09%, at 33,962, the S&P 500 fell 1.59% and the Nasdaq fell 1.06%.

At their lowest on Monday, the Dow blue chips fell 946 points, or 2.7%, the S&P 500 fell 2.2% and the Nasdaq fell 1.7%.

Bonds rallied, pushing the yield on Monday’s benchmark 10-year Treasury index to 1.19%, the lowest in five months.

Cyclical stocks, particularly in the energy and financial sectors, collapsed on Monday.

Airlines such as United Airlines (UAL) – Get a report and American Airlines (AAL) – Get a report and cruise lines like Norwegian Cruise Line Holdings (NCLH) – Get a report were among the biggest laggards. They came across fears about the spread of the delta variant of COVID-19 and fear that new lockdown restrictions could block the economic rebound.

“While pullbacks like the ones we are seeing (Monday) can rattle nerves, it’s important to remember that the market is near all-time highs and corrections are a natural part of a healthy market,” said Chris Larkin. , Managing Director of Trading. at E-Commerce.

And Jim Cramer of TheStreet was clear, “You have to start buying here just because you don’t know when the bottom is going to be,” Cramer said from the floor of the New York Stock Exchange.

“It’s a massive sell-off based on the idea that a bunch of athletes got it, the breakthrough is what worries people, the Johnson & Johnson – people worry – and the Olympics.”

Stocks extended their declines from Friday. This was when stocks ended lower after surging inflation led to an unexpected drop in US consumer confidence in early July. For the week, the Dow Jones fell 0.5%, the S&P 500 fell 1%, and the Nasdaq fell 1.9%.

It was the first weekly loss for the S&P 500 after three weeks of gains.

Jim Cramer: I don’t like to traffic in Peak

Oil prices fell on Monday after an OPEC + supply deal. West Texas Intermediate crude, the US benchmark, fell 7.63% to $ 66.33 per barrel.

The delta variant of COVID-19 has spread rapidly in parts of Asia, including Japan, where the Olympics begin on Friday, and in the United States

Delta is the most transmissible COVID variant to date, U.S. Surgeon General Vivek Murthy told CNN. Experts said this worsened the increase in cases among unvaccinated Americans.

Britain, which dropped almost all of its national restrictions on business and travel on Monday, recorded a world record of 48,000 new infections on Sunday, mainly due to the fast-spreading delta variant.

Indices are correcting as much of the market has already done

The second quarter earnings season will intensify this week and next. S&P 500 company profits are expected to jump 64% from a year earlier, according to FactSet.

Reports are expected this week from International Business Machines (IBM) – Get a report, Netflix (NFLX) – Get a report, Johnson & Johnson (JNJ) – Get a report, Intel (INTC) – Get a report, Abbott Laboratories (ABT) – Get a report, Pacific Union (UNP) – Get a report, Mexican Grill Chipotle (GCM) – Get a report and Honeywell (IT) – Get a report.

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