Dow drops around 600 points as new variants of the coronavirus threaten to weaken economies around the world.
From Wall Street to Sydney, stocks are sinking Monday amid worries that rising mean the pandemic is worsening in hotspots around the world. The S&P 500-stock index fell 1.6% in the first half hour of trading, after setting a record high just a week ago. In another sign of worry, the yield on the 10-year Treasury dropped close to its lowest level in five months. It touched 1.21% as investors scrambled for safer places to put their money. The Dow was down 626 points, or 1.8%, at 34,062, early Monday, while the tech-heavy Nasdaq composite was 1.5% lower. Airlines, hotels and stocks of other companies that would get hurt the most by potential COVID-19 restrictions were taking the heaviest losses, reminiscent of the early days of the pandemic in February and March 2020. Cruise operator Carnival fell 6.2%, and mall owner Simon Property Group lost 6.8%. The drop also circled the world, with several European markets down more than 2%, on worries new virus variants are dragging particularly hard on economies where vaccination rates are low. The price of benchmark U.S. crude, meanwhile, sank more than 5% after OPEC and allied nations agreed on Sunday to eventually allow for higher oil production this year. Experts are saying Indonesia has become a new epicenter for the pandemic as outbreaks worsen across Southeast Asia. Meanwhile, some athletes have tested positive for COVID at Tokyo’s Olympic Village, with the Games due to open Friday.
