Dow Plunges 800 Points As Election, Coronavirus Lockdown Worries Mount
From FOX Business
The Dow Jones Industrial Average fell over 800 points, or 2.9%, mid-morning as selling accelerated, while the S&P 500 slid 2.1% and the Nasdaq Composite lost 1.4%.
|I:DJI||DOW JONES AVERAGES||26889||-768.42||-2.78%|
|I:COMP||NASDAQ COMPOSITE INDEX||10659.313969||-133.97||-1.24%|
Mega-cap tech stocks that have dictated the market’s direction, remained under pressure, with the major averages on track for a fourth straight weekly decline as Apple and Amazon dropped.
With Election Day just over six weeks away, investors are gearing up for a tense battle between Democrats and Republicans over who will become the next Supreme Court justice following Ruth Bader Ginsburg’s death on Friday. The debate will only heighten political tensions ahead of the election, and could possibly delay a new stimulus package.
British Prime Minister Boris Johnson is reportedly considering additional lockdowns to serve as a “circuit breaker” following a flare-up of new COVID-19 infections in the U.K. Other European countries are also said to be weighing new restrictions.
Larry Kudlow, speaking to Fox News Channel, pointed to Europe for the selling. "The market sell-off today coming out of Britain, where they've had another bounce in virus, and they may close down the economy, that would be the biggest factor in the market sell-off," he said.
Looking at stocks, Nikola Corp. founder Trevor Milton stepped down as executive chairman, effective immediately, less than two weeks after short-seller Hindenburg Research called the electric-truck maker a fraud. Milton, who has denied the allegations, will be replaced by board member and former General Motors Co. vice chairman Stephen Girsky. Reports of his arrest were false.
TikTok owner ByteDance will hold an 80% stake in TikTok U.S. with Oracle Inc. and Walmart Inc. taking a minority stake after receiving approval from the Trump administration. The new company, called TikTok Global, will list on a U.S. stock exchange within 12 months and possibly set up a new headquarters in Texas.