The Dow Jones Industrial Average fell more than 700 points on Monday, as fresh concerns about the delta coronavirus strain loomed over the economy’s post-pandemic recovery.
The Dow Jones Industrial Average fell 2.09 percent, or 725 points, to 33,962. The blue-index chip had dropped more than 850 points at one point.
The Dow is on course to have its worst day of the year as a result of Monday’s sell-off.
President Joe Biden tried to calm nerves on Monday by downplaying inflation worries and pointing out that the sell-off follows the stock market’s recent highs. The S&P 500 reached an all-time high just a week ago.
“Nobody, not a single competent economist, is predicting uncontrolled inflation. That’s completely different — look, the stock market is higher than it has ever been, even when it was down this month “In White House remarks six months into office, Biden praised the rebound.
He also went after former President Donald Trump, who was frequently chastised for linking the stock market’s performance with the state of the economy.
“Now, unlike my predecessor, I don’t use the stock market to gauge the health of the economy. But he’d be extremely vocal about how high the stock market is, and he’d be talking to you every day for the last five months about it. It is higher than at any other moment in history. Higher than at any other moment in history. So that isn’t how I determine whether or not we are seeing economic growth “Biden stated the following.
Industries that would be hurt the most by additional virus limitations, including hotels, airlines, and travel companies, are among the hardest-hit equities.
The slaughter comes as the more transmissible delta form has risen to prominence in the United States. According to the Centers for Disease Control and Prevention, the delta variation is responsible for more than half of all recent COVID-19 cases in the United States.
In the United States, new cases are also on the rise, with the CDC reporting an average of 29,604 new cases each day last week, nearly three times the seven-day moving average at the same time last month.
According to statistics released this week, the consumer price index, which measures what people spend for common goods and services and is widely used as an inflation barometer, had the biggest one-month change since June 2008. The consumer price index has increased by 5.4 percent in the last year. Consumer prices have risen sharply, according to economists, due to transitory concerns such as supply chain bottlenecks while the economy recovers.
Finally, in another worrying indication for equity markets, the 10-year Treasury yield plummeted to its lowest level in five months, possibly indicating that investors were looking for safe-havens.