The Dow fell 614 points to start off the week
What started out as a dismal trading session only got worse by the close, with the Dow losing 614 points. The S&P 500 and tech-heavy Nasdaq also plummeted, marking the worst daily percentage drop for all three indexes since May. The Cboe Volatility Index (VIX) -- also known as Wall Street's fear gauge -- scored its highest close and best daily jump in four months.
There were many reasons behind today's selloff. For one, the Covid-19 pandemic is on pace to become America's deadliest, as cases hover around January levels despite vaccinations. Investors are also anxious about the Federal Reserve's two-day meeting, which kicks off tomorrow and could establish the end of monetary stimulus. Plus, China Evergrande Group is now on the brink of collapse, sparking a selloff in the region's property sector and U.S. energy stocks.
Continue reading for more on today's market, including:
- Colgate-Palmolive stock scores bull note on "growth mindset."
- This automotive parts retailer is sinking ahead of tomorrow's report.
- Plus, falling prices weigh on oil name; unpacking Pfizer's vaccine update; and pot stock plummets after bear note.
The Dow Jones Average (DJI - 33,970.47) fell 614.4 points, or 1.8% for the day. Merck (MRK) was the single gainer with a 0.4% pop, while Caterpillar (CAT) fell to the bottom, shedding 4.5%.
The S&P 500 Index (SPX - 4,357.73) dropped 75.3 points, or 1.7% for the day Meanwhile, the Nasdaq Composite (IXIC - 14,713.90) shed 330 points, or 2.2% for the day.
Lastly, the Cboe Volatility Index (VIX - 25.71) added 4.9 points, or 23.6% for the day.
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These U.S. stocks
took a hit after an expected bond default by real estate company China Evergrande Group, which is ratting markets across the globe. (M
arketWatch)
- The White House said the U.S. will ease travel restrictions in November for foreign visitors who are vaccinated against Covid-19 and present a negative test. (CNBC)
- Falling oil prices weighed on Occidental Petroleum stock today.
- Pfizer's Covid-19 vaccine was deemed safe for children aged five to 11.
- This pot stock plummeted after its lower outlook attracted a bear note.
There were no earnings of note.
Gold Snaps Losing Streak on Heels of Evergrande Woes
Gold prices were higher on Monday, bouncing from their lowest level in over five weeks and snapping a three-day loosing streak. Boosting the yellow metal were concerns over aforementioned China Evergrande Group, which impacted markets across the globe. As a result, December-dated gold rose $12.40, or 0.7%, to settle at $1,763.80 an ounce.
Oil prices settled lower, however, as Evergrande's woes led to an energy sector selloff. News that the property developer may be nearing collapse also boosted the U.S. dollar. In turn, October-dated crude fell $1.68 cents, or 2.3%, to settle at $70.14 a barrel today.