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Dow falls more than 100 points as Covid-19 cases continue to rise, Nasdaq hits record

The Dow Jones Industrial Average and S&P 500 fell on Monday following a record-setting session as traders worried about rising coronavirus cases and searched for clues on additional fiscal aid.

The 30-stock Dow closed 148.47 points lower, or 0.5%, at 30,069.79 and snapped a four-day winning streak. The S&P 500 dipped 0.2% to 3,691.96. The Dow and the S&P 500 had closed at all-time highs on Friday. The Nasdaq Composite, meanwhile, rose 0.5% to 12,519.95 and hit a fresh record high.

Intel was the worst-performing Dow stock, falling 3.4%. The energy sector led the S&P 500 lower, sliding 2.4%. Facebook rose 2.1%, and Apple gained 1.2% to lead the Nasdaq higher. Tesla also contributed to the Nasdaq’s gains, advancing 7.1% and reaching an all-time high.

“In the near-term, the risk of a modest equity market pullback has risen because the worsening virus situation in the U.S. could spur a positioning unwind,” wrote Goldman Sachs equity strategists in a note Monday. “Although vaccine approval in the U.S. appears imminent, increased restrictions or shutdowns in the U.S. could slow the near-term recovery in economic growth.”

The U.S. has reported a record-high average number of cases over the past seven days of more than 196,200. That’s up 20% when compared to the week-earlier period. The U.S. was also approaching a record-high number of daily Covid-related deaths.

Dr. Deborah Birx warned on Sunday that the escalating coronavirus cases will be “the worst event that this country will face, not just from a public health side.”

The rising caseload has led to increased calls for additional fiscal stimulus. However, lawmakers are struggling to push through new legislation before year-end.

Dow jumps more than 200 points to a record even after a big U.S. jobs report miss

Stocks rose to record levels on Friday, notching another weekly advance, as traders shook off a disappointing U.S. jobs report.

The Dow Jones Industrial Average closed higher by 248.74 points, or 0.8%, at 30,218.26. The S&P 500 gained 0.9% to end the day at 3,699.12, and the Nasdaq Composite advanced 0.7% to 12,464.23. All three of major indexes posted intraday and closing record highs.

Friday’s jump led major averages to for their fourth weekly gain in five weeks. The Dow rose 1% this week. The S&P 500 gained 1.7% over that time period. The Nasdaq Composite rallied 2.2% this week.

However, some traders saw the weaker-than-expected number as a positive because it could pressure lawmakers to mover forward with additional fiscal stimulus.

Friday’s jobs report data “is beckoning lawmakers to act on additional fiscal stimulus measures in order to bridge the output gap in the economy until a vaccine is deployed and the longer they hold out the wider the gap may become,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

Senate Minority Leader Chuck Schumer tweeted the report “report shows the need for strong, urgent emergency relief is more important than ever.”

President-elect Joe Biden also called for more stimulus, noting Friday’s report foreshadows a “dark winter.” Biden later said it “would be better if they had the $1,200″ stimulus checks, and that he understands “that may still be in play.”

Reference: CNBC