• By The Financial District

Investors Shift To Bonds Worldwide As COVID Fears Intensify

Resurgent pandemic worries are knocking stocks lower from Wall Street to Sydney earlier in the week, fueled by fears that faster-spreading variants of the virus may upend the economy’s strong recovery, Stan Choe, Alex Veiga and Damian J. Troise reported for the Associated Press (AP).

The S&P 500 was 2% lower in afternoon trading, after setting a record just a week earlier. In another sign of worry, the yield on the 10-year Treasury touched its lowest level in five months as investors scrambled for safer places to put their money.

The Dow Jones Industrial Average was down 896 points, or 2.6%, at 33,791, as of 12:42 p.m. Eastern time. The Nasdaq composite was 1.4% lower. Airlines and stocks of other companies that would get hurt the most by potential COVID-19 restrictions were taking some of the heaviest losses, similar to the early days of the pandemic in February and March 2020. Mall owner Simon Property Group fell 5.4%, and cruise operator Carnival lost 5.2%.

Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

The drop also circled the world, with several European markets sinking roughly 2.5% and Asian indexes down a bit less. The price of benchmark US crude, meanwhile, sank more than 6% after OPEC and allied nations agreed on Sunday to eventually allow for higher oil production this year.

Financial markets have been showing signs of increased concerns for a while, but the U.S. stock market had remained largely resilient. The S&P 500 has had just two down weeks in the last eight, and the last time it had even a 5% pullback from a record high was in October. Several analysts pointed to that backdrop of high prices and very calm movements for weeks while dissecting Monday’s drop.


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