Wall Street Close: Benchmarks start off the week in the red
|- Dow Jones Industrial Average lost 2%.
- The S&P 500 fell 1.28%.
- The Nasdaq Composite dropped 0.22%.
US benchmarks ended lower on Monday as the coronavirus spreads and lockdowns in Europe along with the possible delays in fresh stimulus from Congress trobles investors.
Investor's fears over the US economy facing a longer road to recovery is weighing on markets to start the week.
Congress has for weeks remained deadlocked over the size and shape of another coronavirus-response bill, on top of the roughly $3 trillion already enacted into law
The death of US Supreme Court Justice Ruth Bader Ginsburg likely means that the passage of another stimulus package in Congress less likely before the US presidential election.
Consequently, the Dow Jones Industrial Average lost 2% to end at 27,102.99 points ,while the S&P 500 fell 1.28% to 3,276.87. The Nasdaq Composite dropped 0.22%, to 10,769.20.
The CBOE Market Volatility index VIX, Wall Street's fear gauge, shot up to its highest level in nearly two weeks.
As for US data, the Chicago Fed’s National Activity indicator for August pointed to a sharp loss of momentum in the recovery last month. It fell to 0.79 from 2.54 in July.
Production related indicators added 0.23 to the index, down from 1.26 the prior month.
Some normalisation is to be expected after manufacturing recovered impressively as the lockdown eased. Forty-five of the 85 indicators in the index were positive while 40 were negative,
analysts at ANZ bank explained.
SP 500 index levels
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