U.S. stocks dropped sharply Monday as coronavirus cases surged in the U.S. and Europe, adding to worries about the economic outlook after Congress and the White House failed to agree on a much-anticipated fiscal stimulus deal.
Major indexes opened lower, and the declines accelerated into the afternoon. All 30 components of the Dow Jones Industrial Average were lower, as were all 11 sectors of the S&P 500.
The Dow industrials fell 880 points, or 3.1%, putting the blue chips on track for their worst day since June 11. The S&P 500 dropped 2.6%, and the Nasdaq Composite fell 2.4%.
Among the biggest decliners were the travel and leisure stocks, like Royal Caribbean Group , United Airlines Holdings and Marriott International , that have come under the most pressure this year during the pandemic.
“The ability to fight the virus further right now is very much in question, and it’s a political question,” said Steven Wieting. chief strategist at Citi Private Bank. It could be months before anything gets done in Washington, and that’s got investors tentative, he said.