Market News – U.S. stock markets opened weakly on Monday, on fears that a third wave of the coronavirus pandemic will push back the day when economic life can get back to normal. Failure by politicians in Washington to make any progress in passing a support package to bridge the gap until that day has also weighed on sentiment.
By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was down 326 points, or 1.1%, at 28,010 points. The S&P 500 index was down 0.9% and the Nasdaq Composite was down 0.4%. All three indexes have now been trending downward for the last two weeks.
The U.S. is clearly experiencing a third wave of the pandemic with just a week to go before the election. Hospitalization rates have risen by around half over the last month to their highest since August, while the seven-day moving average for deaths has been trending up for nearly two weeks. Whether the economy has adapted enough in the last six months to ride out the new wave seems open to question, with initial jobless claims still running at nearly 800,000 a week.