US Dow Plummets 509 Points Amid Fears of Pandemic Worsening

Andrew Cummings
September 22, 2020

At 7:10 a.m. ET, Dow e-minis were down 542 points, or 1.96%, S&P 500 e-minis were down 54.5 points, or 1.64% and Nasdaq 100 e-minis were down 159.75 points, or 1.46%.

At closing bell on Monday, the Dow Jones Industrial Average was down some 509.72 points, a 1.84% drop, finishing at 27,147.70.

Thomas Mantione, managing director at UBS Private Wealth Management in Stamford, Connecticut, said the passing of US Supreme Court Justice Ruth Bader Ginsburg also decreases the chances of another fiscal stimulus package to help lift the domestic economy from a deep recession. It fell to 0.79 from 2.54 in July. Covid-19-related deaths in the United States neared 200,000, and new cases have risen significantly in Arkansas, Colorado, Idaho, Montana, Nebraska and North Dakota over the past week. The Nasdaq composite index was down more than 1%. Airlines stocks plummeted Monday, with United Airlines down almost 9% and American Airlines down 7.4%.

It's been a rough month so far for the market and technology shares in particular.

Monday's slide comes after a few weeks of stock market losses.

Over the weekend, China announced a new regulatory body that could blacklist foreign companies that put China's national security at risk.

China has not yet said which companies would be labeled "unreliable entities" - firms that threaten the development of Chinese companies - but Chinese state media have suggested that USA tech firms including Apple, Qualcomm and Cisco would be considered.

Major benchmark indices plummeted after the opening bell in NY as investors remain concerned over the widespread impact of the coronavirus pandemic, as well as ongoing tensions with China and a decline in big tech stocks.

The U.S. economic slowdown amid the coronavirus pandemic also continues to worry investors.

Tensions between Washington and Beijing were also in focus, with the Chinese Ministry of Commerce releasing long-awaited provisions on its so-called "unreliable entity list", a day after the U.S. instituted its ban on WeChat and TikTok.

The Federal Reserve has cut interest rates to historic lows and says it expects to keep them down through at least 2023, but Congress has been deadlocked about providing additional pandemic economic assistance.

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