Dow, S&P 500, Nasdaq Down More than 1%
Wall Street kicked off the new year firmly in the red with both the Dow and S&P 500 suffering their worst trading days in more than two months. Investors are bracing for the possibility of more lockdowns with the confirmed cases of Covid-19 worldwide now topping 85 million, according to Johns Hopkins.
The Dow Jones Industrial Average ended the day off 382 points at 30,223 for a loss of 1.25% on the day. This, after falling more than 700 points earlier in the session. The Nasdaq ended the first trading day of the year off 1.47% at 12,698 and the S&P 500 closed down 1.48 percent at 3700.
Some of the harder hit stocks included shares of companies that investors believe will suffer amid the continued effects of the coronavirus pandemic. Shares of Coca-cola, Hilton Worldwide Holdings, Marriott International, American Airlines and Delta were all lower. The global tally for confirmed cases of Covid-19 rose above 85 million on Monday, according to data from Johns Hopkins, while the death toll exceeded 1.8 million.
Additional concerns about a variant of the virus is causing many to worry about the future of the global economy. The UK announced its third mandatory lockdown since the onset of the virus in March 2020.
Investors sought the safety of gold with gold prices rising nearly 3% to $1945 and the Cboe Volatility Index, known as the VIX, shot up nearly 20% to 26.88.
Stocks ending 2020 higher on the year; up 7.3% for the year on the Dow, and up 16.3% on the S&P 500. The tech-heavy NASDAQ Composite Index saw its best annual gains since 2009 in 2020, rising 43.6% in 2020.