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Stocks Drop Sharply Amid 'Perfect Storm'

Dow drops 650 points as virus cases surge
By Newser Editors and Wire Services
Posted Oct 26, 2020 4:08 PM CDT

(Newser) – Stocks fell sharply Monday, deepening last week's losses, as a troubling increase in coronavirus counts put investors in a selling mood. The skid came as doubts mount on Wall Street that Washington will come through with more stimulus for the economy before Election Day, the AP reports. The S&P 500 slid 1.9%, its biggest single-day decline in more than a month. The Dow Jones Industrial Average dropped 650 points after having been down more than 960 during the heaviest selling. Technology companies drove much of the broad sell-off, though losses in communications services, financial, and industrial stocks helped weigh down the market. Energy stocks also dropped in tandem with crude oil prices

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The S&P 500 fell 64.42 points to 3,400.97. The Dow slumped 650.19 points, or 2.3%, to 27,685.38. The Nasdaq composite lost 189.34 points, or 1.6%, to 11,358.94. Stocks also fell across much of Europe and Asia. In another sign of caution, Treasury yields pulled back after touching their highest level since June last week. Smaller company stocks also took heavy losses, knocking the Russell 2000 index down 35.29 points, or 2.2%, to 1,605.21. "It’s kind of a perfect storm," says Ross Mayfield, investment strategy analyst at Baird. "The record case numbers and the kind of rolling lockdowns across Europe are getting the headlines. Oil is down on some supply and demand issues. Stimulus seems more and more unlikely by the day, at least pre-election."

(Read more stock market stories.)

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