The stock market continued a September slide Monday, with the Dow Jones Industrial Average falling about 800 points at one point. The S&P 500 sank 1.2%, though a last-hour recovery helped it more than halve its loss from earlier in the day.
The Dow Jones Industrial Average fell 509.72, or 1.8%, to 27,147.70 after coming back from an earlier 942 point slide. The Nasdaq composite slipped 14.48, or 0.1%, to 10,778.80 after recovering from a 2.5% drop.
Monday’s downward movement was seen across many sectors, and market watchers point to multiple reasons.
Multiple media outlets are reporting about documents indicating major banks around the world potentially ignored red flags and allowed millions to be transferred by questionable companies or individuals. Stock prices for banks, including JP Morgan Chase, fell on Monday.
Many are worried about a spike in coronavirus cases and potential new “waves” of the virus; the United Kingdomannounced they are seeing a sharp increase in cases.
The recent death of Supreme Court Justice Ruth Bader Ginsburg and subsequent announcement a replacement could come soon means congress will be focused on hearings and the nomination process, and potentially not focused on any federal coronavirus relief aid, according to Marketplace.org.
Without federal relief, economic experts have warned of a longer recovery. The Federal Reserve last week said the future of the U.S. economy remained uncertain.
Over the weekend, China announced a new regulatory body that could blacklist foreign companies that put China’s national security at risk. NPR saysthis group could target U.S. tech companies operating in China, like Apple, Cisco, and others.
Monday’s slide comes after a few weeks of stock market losses. September is historically the worst month for stocks, according to theAssociated Press.
“The market has been poised to just pull back, take a breather,” said Quincy Krosby, chief market strategist at Prudential Financial. “Raising capital is prudent during a month that is known statistically, historically for being difficult for the market.”
