Economic value and travel stocks take a hit after a surge in COVID-19 cases worldwide raised new concerns about slowing economic growth

Wall Street major indexes fell sharply early Monday morning, with economy-related value and travel stocks taking a hit after a surge in COVID-19 cases worldwide raised new concerns about a slowdown in economic growth.

At 9:41 a.m., the Dow Jones Industrial Average fell 526.24 points, or 1.54%, to 34,161.61, the S&P 500 lost 56.24 points, or 1.30%, to 4,270.92, and the Nasdaq Composite lost 119, 13 points or 0.81% to 14,562.25.

Crude oil prices fell 3% after the major oil-producing countries agreed to raise production limits. Indonesia has become a new epicenter for the pandemic as outbreaks worsen across Southeast Asia. Many nations were hit by the faster transmitted Delta variant.

Wall Street major indices closed lower on Friday, with investors moving to defensive sectors as they feared a resurgence of coronavirus cases could delay a strong economic recovery and slow a strong market rebound from 2020 lows.

The S&P 500 benchmark index is up nearly 15.2% so far this year, with market participants now looking for strong company forecasts to warrant sky-high valuations.

After strong quarterly reports from major banks last week, the focus is shifting to technology gains, with companies like International Business Machines Corp, Netflix, Texas Instruments, and Intel reporting this week.

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Ref: https://www.livemint.com