How major USA stock indexes fared Monday

Daniel Fowler
September 22, 2020

The S&P 500 lost 1.2%, posting its first four-day losing streak since February. The Dow and the S&P 500 have fallen 4.5% and 6.3% this month, respectively, while the Nasdaq has dropped 8.4% as investors dumped high-flying tech giants.

"Investors are becoming increasingly anxious about the momentum in the economic recovery given the resurgent numbers of global Covid-19 cases", the chief market strategist at FXTM, Hussein Sayed, told CNN. There now seems to be an election risk that is getting priced into the market.

Congress has for weeks remained deadlocked over the size and shape of a fifth coronavirus-response bill, on top of the approximately US$3 trillion already enacted into law.

Healthcare providers came under pressure on uncertainty over the fate of the Affordable Care Act (ACA), better known as Obamacare, with shares of Universal Health Services falling hard.

The S&P 500 ended with its fourth-straight loss, though a last-hour rally helped trim its decline by more than half.

Another round of business restrictions would also threaten a nascent recovery in the wider economy, analysts said, and could spark a flight from equities.

Dirty money: Global banks complicit in flow of illicit funds for years
Barclays, -5.38%, Commerzbank, -4.06%, and Danske Bank, -3.06% were also named in the report, as were several US banks. The investigation also highlighted the American authorities' lack of power in regulating dirty financial transactions.

The Dow Jones Industrial Average fell almost 800 points on Monday after China announced regulations that could threaten USA tech firms, which have been leading the stock market to new records.

Airline, hotel and cruise companies tracked declines in their European peers as the United Kingdom signalled the possibility of a second national lockdown. Europe's travel and leisure index marked its worst two-day drop since April.

For the week ending Friday, the Dow was down 0.03 percent, the S&P 500 slid 0.64 percent, and the Nasdaq fell 0.56 percent.

Nikola Corp plunged 18.2% after its founder Trevor Milton stepped down as executive chairman following a public squabble with a short-seller over allegations of nepotism and fraud.

General Motors Co, which took an 11% stake in Nikola for about $2 billion earlier this month, slipped 3.7%. At least one more cycle of the virus is expected in the fall and winter, the U.S.'s former FDA Commissioner Scott Gottlieb said. The Nasdaq appears to have moved lower after surging in August which now puts most of the indices in lockstep for the year.

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