Nasdaq ends 2.1% lower, finishing streak of records

Nasdaq ends 2.1% lower, finishing streak of records

FILE PHOTO: New York Stock Exchange opens during COVID-19
Traders walk past the New York Stock Exchange in the Manhattan borough of New York, U.S., May 26, 2020. (Photo: REUTERS/Lucas Jackson)

NEW YORK: The Nasdaq tumbled on Monday (Jul 13), ending a three-session streak of records on a weak day for US stocks amid fresh restrictions in California to address the coronavirus.

The tech-rich Nasdaq Composite Index dropped 2.1 per cent to 10,390.84.

The Dow Jones Industrial Average mustered a narrow gain of less than 0.1 per cent at 26,085.80, while the broad-based S&P 500 shed 0.9 per cent to 3,155.22.

Stocks had opened solidly higher following an announcement from Pfizer and BioNTech announcing that two of four vaccine candidates for the coronavirus received "Fast Track" designation from the US Food and Drug Administration.

But equities turned sharply lower in the final two hours of trading.

California Governor Gavin Newsom ordered all indoor restaurants, bars and movie theaters to close again as coronavirus cases soar across the state, the latest retreat in reopening the nation's most-populous state.

The move comes on the heels of other restrictions imposed in Texas, Arizona and other major states that are also contending with big jumps in COVID-19 cases. analyst Patrick O'Hare attributed the decline to the massive increase in the US deficit in the wake of emergency spending to blunt the impact of the pandemic, which came in at US$864 billion in June compared with US$8 billion in the year-ago period.

That figure was "sobering" and weighed on the market that many had viewed as overbought, O'Hare said.

"It was a market that was ripe for a pullback," said O'Hare, who added that investors are also cautious ahead of earnings releases from JPMorgan Chase and other large banks in the coming days.

Source: AFP/ec