On Monday, U.S. stocks encountered a sell-off. The Dow Jones Industrial Average tumbled 650 points (-2.29%) to 27685, the S&P 500 shed 64 points (-1.86%) to 3401, and the Nasdaq 100 sank 188 points (-1.61%) to 11504.
S&P 500 Index (Daily Chart) : Caution
Investors were deeply concerned with spiking new COVID-19 cases in the U.S. and Europe. Spain announced plans to introduce a curfew due to the reviving pandemic. Meanwhile, U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi failed again to agree on a fiscal stimulus deal.
Energy (-3.47%), Software & Services (-2.95%) and Consumer Services (-2.64%) sectors performed the worst. Energy stocks — such as Apache (APA -7.76%), ConocoPhillips (COP -6.82%) and Devon Energy (DVN -5.88%) — were top losers as oil prices slid over 3%.
Boeing (BA -3.9%), Caterpillar (CAT -3.20%) and American Express (AXP -4.04%) also fell.
Approximately 75% (74% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 68% (67% in the prior session) were trading above their 20-day moving average.
The VIX Index, Wall Street’s fear gauge, jumped 4.91pts (+17.82%) to 32.46.
European stocks were also deeply in the red. The Stoxx Europe 600 Index dropped 1.81%, Germany’s DAX 30 plunged 3.71%, France’s CAC 40 lost 1.90% and the U.K.’s FTSE 100 was down 1.16%.
U.S. Treasury prices climbed further, as the benchmark 10-year Treasury yield declined to 0.799% from 0.840% Friday.
Spot gold edged down $0.5 to $1,901 an ounce.
Oil prices ended sharply lower, pressured by worries over lower oil demand due to the coronavirus pandemic and over excess oil supplies from Libya. U.S. WTI crude futures (December) dropped $1.29 (-3.24%) to $38.56 a barrel.
On the forex front, the U.S. dollar outperformed other major currencies, as investors turned to safe-haven assets amid a sell-off in stocks. The ICE Dollar Index gained 0.33% to 93.07.
EUR/USD dropped 0.46% to 1.1809. Germany’s IFO Business Climate Index declined to 92.7 in October (93.0 expected).
GBP/USD declined 0.12% to 1.3025 posting a four-session losing streak.
USD/JPY stepped up to 104.83 from 104.73 in the prior session.
The Canadian dollar weakened against the greenback amid sliding oil prices. USD/CAD jumped 0.66% to 1.3212, back above its 20-day moving average.
AUD/USD retreated 0.24% to 0.7123, still below its 20-day moving average.