(Reuters) – Major Wall Street indices hit nearly seven-week lows on Monday as fears of new coronavirus restrictions and the failure of Congress to negotiate additional stimulus measures sparked worries about another hit to the U.S. economy.
All major S&P sectors fell, led by the energy sector, amid falling oil prices due to a possible resumption of production in Libya and an increase in the number of cases of coronavirus infection.
Another round of quarantine restrictions will jeopardize the incipient economic recovery as a whole and increase pressure on stock markets, analysts say. The first round of lockdowns in March caused the S&P 500's worst monthly fall since the global financial crisis.
“We have been in the momentum trading market for several weeks now,” said Rick Meckler, partner at Cherry Lane Investments.
“When the market was growing, the biggest reason for the growth was that people wanted to jump into it before it went even higher. And now people are getting nervous that this year's almost exceptional gains will be lost.”
By 18:23 Moscow time, the Dow Jones index fell by 3.27% to 26,752.16 points, the S&P 500 – by 2.57% to 3.234.21 points, and the Nasdaq – by 2.06% to 10,570.45 points.
(Devik Jain in Bangalore. Translated by Alexey Kuzmin. Editor Marina Bobrova)