S&P 500 and Dow move from records to start this week

On Monday, the Dow Jones Industrial Average fell on concerns about global growth. It happened after the 30-stock average cut a record close Friday.

The Dow fell 106.67 points to 35,101.86, which is equal to 0.3%. The S&P 500 sold below 0.1% at 4,432.36. In the meantime, the Nasdaq Composite surged by 0.17% to 14,860.19.

On Monday, Oil prices dropped, building on last week’s declines, as rising Covid cases caused a slowdown in demand. West Texas Intermediate crude futures experienced a loss of more than 6% at one point to trade as low as $65.17, which is a level not seen since April. The contract gained some losses during afternoon trading and ultimately ended 2.65% lower at $66.49 per barrel. International benchmark Brent crude ended at around $69.06 per barrel for its loss of 2.36% after reaching a low of $67.65.

Oil’s slide drove energy stocks lower, with the Energy Select Sector SPDR ETF below 1.4%. Chevron and Exxon Mobil lost 1.3% and 1.8%. Diamondback Energy shifted by 3.6%.

On Monday, stocks bound to the economic recovery, like airlines and cruise lines, drifted lower. Norwegian Cruise Line dropped almost by 2% after a federal judge ordered that the cruise line ask passengers to show proof of COVID-19 vaccination.

Royal Caribbean and Carnival also lost over 1%. United Airlines and American Airlines decreased by 2.3% and 2.6%.

Chief investment strategist at the Leuthold Group, Jim Paulsen, said that Covid weighs heavily on the financial markets.

He added that the increase in cases still pressures some parts of the stock market, including sectors like industrials and energy with small-cap stocks.

On Monday, Tesla shares directed the Nasdaq higher. It gained 2.2% after Jefferies upgraded the stock while predicting a more than 21% increase over the next 12 months.

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