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Dow drops 200 points as new UK virus strain outweighs $900 billion stimulus deal

Matthew Fox   

Dow drops 200 points as new UK virus strain outweighs $900 billion stimulus deal
Stock Market1 min read
  • US stocks fell sharply on Monday as a new COVID-19 strain identified in the UK weighed on investor sentiment.
  • The mutated virus strain is said to be more contagious and has led to new lockdown measures and travel restrictions in the UK just ahead of Christmas.
  • A new $900 billion stimulus deal from Congress that includes $600 direct checks wasn't enough to counter investor concerns about the mutated virus.
  • Watch major indexes update live here.

US stocks declined on Monday as investors grappled with a new COVID-19 strain identified in the UK that's said to be more contagious.

Renewed virus concerns outweighed the $900 billion stimulus deal from Congress that includes $600 stimulus checks and expanded unemployment benefits.

Much is still unknown about the mutated virus, including how well vaccines from Pfizer and Moderna can protect against it.

Surging COVID-19 cases and concerns about the new variant of the virus have led to lockdown measures and travel restrictions for the UK. France, Germany, Italy, Ireland, and the Netherlands have banned flights from the UK, and Austria and Sweden are preparing to do the same.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

Read more: BANK OF AMERICA: Buy these 26 cheap and fundamentally rock-solid stocks before the economic rebound sends them soaring in 2021

Travel stocks plummeted on Monday as investors grappled with the renewed risk of a longer shutdown and travel restrictions. Airline stocks fell as much as 9%, while cruise-line stocks dropped as much as 12%.

Oil prices edged lower. West Texas Intermediate crude dropped as much as 6%, to $46.18 per barrel. Brent crude, oil's international benchmark, declined 5.9%, to $49.20 per barrel, at intraday lows.

Gold rose as much as 1.4%, to $1,906.82 per ounce.

Read more: A hedge fund chief who oversees $2 billion breaks down why we're in for a 61% stock-market crash over the next 18-24 months - and shares 3 types of companies he's shorting right now

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