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  • Writer's pictureBy The Financial District

WALL STREET STOCKS DOWN DUE TO COVID UPSURGE

US stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the US economic recovery. 

Travel-related stocks, vulnerable to COVID-19 related curbs, fell sharply. The S&P 1500 airlines index fell about 5.6% while cruise line operators Carnival Corp fell 8.66% and Royal Caribbean Cruises Ltd slid 9.65%, the biggest decliner among S&P500 companies, Herbert Lash reported for Reuters late on October 26, 2020 (Tuesday, October 27, 2020 in Manila). 


“Fears about COVID-19 resurgence and the continued failure to reach a fiscal policy package between Republicans and Democrats has investors unnerved,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. “Those are the two biggest drivers of today’s decline.” 


The energy index tracked a more than 3% fall in oil prices, falling 3.47%. The economically sensitive industrials and financials also posted steep declines among S&P sectors. The big price moves came as trading volume was less than the daily October average. “From our clients’ perspective, the uncertainty is causing them to stay on the sidelines. So you’re seeing a lack of buyers, generally speaking,” said King Lip, chief strategist at Baker Avenue Asset Management in San Francisco.





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