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Summary
- Wall Street witnessed a broad sell-off on Monday with a significant decline in airline and travel stocks.
- Investors seemed concerned about the increasing number of COVID cases after declining in the past months.
- The S&P 500 Index gained around 13% year to date while Dow Jones grew 12%.
The U.S. stock market had a rough start this week as stocks tumbled on Monday’s trading amid concerns about the rebounding coronavirus cases with the more transmissible delta variant spreading among the unvaccinated population.
Wall Street witnessed a broad market sell-off yesterday, similar to the kind of activity when the coronavirus started spreading last year.
The S&P 500 index plunged 1.59 percent on Monday. The Dow Jones Industrial Average tanked 2.09 percent while the tech-savvy NASDAQ Composite Index was down 1.06 percent.
Stocks of airlines and travel companies declined sharply as investors seemed worried about any potential travel restrictions with the growing number of cases.
Last week, the Centers for Disease Control and Prevention said the seven day average of daily new COVID cases in the U.S. jumped 69.3 percent to 26,306 from the previous week’s cases.
Some of the travel-related stocks that fell more than 4 percent on Monday include the Boeing Company (NYSE:BA), American Airlines Group Inc. (NASDAQ:AAL), United Airlines Holdings, Inc. (NASDAQ:UAL), Carnival Corporation & plc (NYSE:CCL), Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) and Simon Property Group (NYSE:SPG).
The economic recovery has been faster than expected and the demand for travel and other activities bounced at a faster pace quickly this year. But the investors are now concerned that further increase in COVID cases could lead to more restrictions and delay the economy’s anticipated recovery from the pandemic impact.
READ MORE: US stocks decline over fears of rising COVID cases
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READ MORE: Airline stocks tumble amid concerns over rebounding COVID cases
However, this sudden decline in stock could be short-lived and there seems to be little chance for the slump to be extended to more trading sessions.
As the available coronavirus vaccines in the country are effective in combating the delta variants, vaccinating the entire population quickly can stop further spreading and other disruptions.
The data from the CDC showed that last week’s seven-day moving average was 89.6 percent lower than the peak observed on January 10 this year. In addition, about 55.8 percent of the total population in the U.S. were administered at least one dose of vaccine and about 48.3 percent of the population have been fully vaccinated.
The S&P 500 Index gained 13.38 percent year to date, while Dow Jones is up 12.37 percent year.
Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
The reference data in this article has been partly sourced from Refinitiv.
