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Dow plunges 650 points as record COVID-19 spike and lack of stimulus trouble investors

Matthew Fox   

Dow plunges 650 points as record COVID-19 spike and lack of stimulus trouble investors
Stock Market2 min read
  • US stocks fell sharply on Monday as investors weighed both a lack of progress on fiscal stimulus negotiations and a record number of daily COVID-19 cases.
  • Negotiations on a relief package are ongoing, but expectations that a deal will be ironed out before next week's presidential election are diminishing.
  • US daily coronavirus cases surpassed 80,000 on both Friday and Saturday, and reports said five people in Vice President Mike Pence's inner circle had tested positive for the virus.
  • Watch major indexes update live here.

US stocks were slammed on Monday as investors weighed fading hopes of a fiscal stimulus deal before next week's election and a record number of daily COVID-19 cases over the weekend.

The Dow Jones industrial average plummeted as much as 965 points at intraday lows, while the S&P 500 posted its biggest single-day loss since September 23.

On both Friday and Saturday, US COVID-19 cases surged past 80,000, representing record highs amid another wave of cases heading into the colder winter months.

Five people in Vice President Mike Pence's inner circle — including his chief of staff, Marc Short — reportedly tested positive for the virus.

Here's where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: 'I'm basically going to be long growth': Billionaire investor Chamath Palihapitiya has hauled in a 997% return since 2011. He details the 5 sectors shaping his long-term investment playbook.

Though talks about a stimulus deal are ongoing, it's increasingly likely that there won't be a deal until after Inauguration Day in January.

"Talks have slowed down, but they're not ending," the White House advisor Larry Kudlow told CNBC on Monday.

The German tech firm SAP plunged on Monday after it cut its 2020 financial outlook because of a slow recovery from the COVID-19 pandemic. Dunkin' Brands jumped 18% after it confirmed reports that it's in preliminary talks to be acquired by Inspire Brands for $8.8 billion.

Read more: BANK OF AMERICA: Buy these 11 under-owned stocks ahead of their earnings reports because they're the most likely candidates to beat expectations in the weeks ahead

Jack Ma's Ant Group is set to go public in the biggest initial public offering ever; it said it planned to raise $34.5 billion in a dual listing on the Hong Kong and Shanghai exchanges.

Industrial stocks moved broadly lower on Monday after China announced sanctions against Lockheed Martin, Boeing, and Raytheon over sales to Taiwan.

Gold edged higher, rising as much as 0.3%, to $1,908.59 per ounce.

Oil prices tumbled as Libya signaled a production increase. West Texas Intermediate crude fell as much as 3.9%, to $38.28 per barrel. Brent crude, oil's international benchmark, fell 3.7%, to $40.22 per barrel, at intraday lows. The large declines dragged energy stocks lower.

Read more: 'The road to financial implosion': A notorious market bear says the Fed has set the stage for a 67% stock plunge — and warns of zero-to-negative returns over the next 12 years

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