Home Stock & Shares Dow Jones loses 509 points in market sell-off

Dow Jones loses 509 points in market sell-off

by Jonathan Adams
Dow Jones

Rising concerns over further lockdowns in Europe triggered the market sell-off

On Monday, the Dow Jones Industrial Average once tumbled over 900 points before reducing its loss to 509 points (-1.84%) and closing at 27147. The S&P 500 sank 38 points (-1.16%) to 3281, while the Nasdaq 100 managed to close 43 points higher (+0.40%) at 10980.

The market sell-off was triggered by growing concerns over further coronavirus-related shutdowns in Europe. And uncertainty surrounding the U.S. election added to pressure on stocks.

Automobiles & Components (-4.81%), Capital Goods (-4.01%), Materials (-3.41%) sectors lost the most. Energy-related stocks – such as TechnipFMC (FTI -10.3%), Halliburton (HAL -8.69%) and National Oilwell Varco (NOV -7.54%) – slid along with oil prices.

General Electric (GE -7.70%), Universal Health Services (UHS -8.17%), Illumina (ILMN -8.48%) and Delta Air Lines (DAL -9.20%) were also top losers. Meanwhile, Apple (AAPL +3.03%) and Tesla (TSLA +1.64%) ended higher.

Approximately 61.4% of stocks in the S&P 500 Index were trading above their 200-day moving average and 41.0% were trading above their 20-day moving average.

The benchmark U.S. 10-year Treasury yield declined to 0.668% from 0.690% Friday.

Commodities prices were also impacted by souring market sentiment as well as a strengthening U.S. dollar. U.S. WTI crude oil futures (October) plummeted 4.4% to $39.31 a barrel, and spot gold slumped $42.00 (-2.2%) to $1,912 an ounce. Spot silver shed 7.7% to $24.72 an ounce.

On the forex front, the U.S. dollar rebounded against its major peers, with the ICE U.S. Dollar Index bouncing 0.6% on day to 93.55.

EUR/USD slid 0.7% to 1.1766. Later today, the eurozone’s Consumer Confidence Index for September will be released.

GBP/USD lost 0.9% to 1.2819, wiping out most of the gains made last week.

USD/JPY gained 0.2% to 104.69, halting a five-day decline.

Commodity-linked currencies were broadly lower against the greenback, as risk appetite faded. AUD/USD dropped 0.9% to 0.7229 and NZD/USD plunged 1.4% to 0.6665, while USD/CAD climbed 0.8% to 1.3303.

Important
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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