The US stock market took a dive on Monday, following the pattern of Asian and European stocks, as concerns mount over new coronavirus outbreaks in the United States and China.
The Dow Jones Industrial Average plummeted 2.4 percent at the opening bell. The S&P 500 index of America’s top 500 corporations slid 1.9 percent, while the tech-heavy Nasdaq Composite is trading 1.4 percent lower. Last week, all three major equity benchmarks suffered their worst week since March 20.
European investors also weighed the potential resurgence of the deadly virus. Stocks in London, Frankfurt and Paris joined the global sell-off, with the British FTSE 100, Germany’s DAX and France’s CAC 40 starting the week more than two percent lower.
In Asia, Japan’s Nikkei shed over three percent, making it one of the worst performers in the region as the week began. South Korea’s Kospi fell even lower, losing more than four percent.
The global market’s pullback comes after China reported 36 new coronavirus cases earlier on Monday, bringing the total number to 79 since a locally transmitted infection was reported on June 12, the first in nearly two months. The Chinese capital said it was reintroducing strict lockdown measures and rolling out mass testing.
Meanwhile, scientists and health experts in the United States are warning about the potential for a second wave of the virus as much of the country begins to reopen following the lockdown. Several US states that reopened weeks ago, including Alabama, California, Florida and North Carolina, are now reporting a rising number of infections and hospitalizations.
“The meltup may need to take a break, as sentiment has turned too bullish too rapidly,” Ed Yardeni, president and chief investment strategist at Yardeni Research, said in a note on Sunday as cited by CNBC. “Now that reopening is happening, there’s fear of suboptimal results: less social distancing triggering a second wave of the virus, followed by another round of lockdowns.”
The number of global coronavirus cases has already surpassed the eight million mark, with more than 436,000 deaths. The number of new infections recorded across the world on Monday stands at 44,136, while 1,095 people have died.
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