American stock indices are markedly reduced at the beginning of trading on Monday amid sales in global markets.
The Dow Jones Industrial Average by 17:22 Moscow time fell by 776.02 points (2.81%) – to 26881.40 points.
Standard & Poor's 500 lost 78.66 points (2.37%) and amounted to 3240.81 points.
The Nasdaq Composite fell by 184.94 points (1.71%) – to 10608.34 points.
The deteriorating investor sentiment is due to a number of factors, including delays in the adoption of the next stimulus program for the American economy, the upcoming presidential elections in the United States, continuing tensions in US-China relations and the threat of repeated restrictive measures in many countries due to the increase in the incidence of coronavirus.
Investors continue to monitor negotiations on a new package of measures to support the US economy. House of Representatives Speaker Nancy Pelosi said Friday that airlines and restaurants may need a separate incentive package. Since the Democratic House of Representatives proposed a $ 3.4 trillion package in May that was not supported by the Senate, she said, new needs have arisen.
Meanwhile, China's Ministry of Commerce last weekend published the regulations on its list of “unreliable subjects.” It will include foreign companies or individuals that threaten China's state sovereignty, security and development interests. Beijing took this step after the US Department of Commerce announced a ban on Chinese mobile apps WeChat and TikTok in the US.
A number of countries are seeing an increase in new cases of COVID-19 infection. British Prime Minister Boris Johnson said that the second wave of the coronavirus epidemic is starting in the country, the British press reported on Friday.
They also do not add optimism to media reports citing data from the International Consortium of Investigative Journalists that the world's largest banks from 1999 to 2017 conducted many suspicious transactions and assisted clients in money laundering in the amount of over $ 2 trillion. Among the banks is the British-Hong Kong banking group HSBC, whose shares fell 5.3% on the basis of trading in Hong Kong – to 29.30 Hong Kong dollars, the lowest since May 1995.
Illumina Inc. during trading on Monday are down 5.9%. A leading manufacturer of genome sequencing equipment has agreed to acquire Grail Inc., which specializes in the development of test systems for the early detection of cancer. The deal will be paid for in cash and shares and will amount to $ 8 billion, according to a joint press release between the companies.
Microsoft Corp (NASDAQ: MSFT) shares. become cheaper by 1.4%. The company announced the purchase of ZeniMax Media, which owns renowned PC game developer Bethesda Softworks, for $ 7.5 billion. The deal will be paid for in cash.
Nikola Corp. collapsed by 15%. The board of directors of the American electric truck manufacturer announced the resignation of founder and executive chairman of the board, Trevor Milton, and the appointment of Stephen Geersky as chairman. Girski, a member of the Nikola Board of Directors, in 2009-2014. He was a top manager of General Motors (NYSE: GM) Co.
Oracle Corp (NYSE: ORCL). and Walmart (NYSE: WMT) Inc. rise in price by 1.7% and 0.3%, respectively. US President Donald Trump has agreed to a deal that would bring the popular short video sharing service TikTok under the control of American investors, including Oracle and Walmart.