US Market extends decline on stimulus, Covid-19 jitters

The US stocks declined for fourth straight session on Monday, 21 September 2020, with the major averages finished deeply into negative territory, as concerns over potential worsening of the coronavirus pandemic. Meanwhile, uncertainty on further U.S. fiscal stimulus and tensions between the U.S. and China nudged investors away from risk assets.

At closing bell, the Dow Jones Industrial Average index declined 509.72 points, or 1.84%, to 27,147.70. The S&P 500 index fell 38.41 points, or 1.16%, to 3,281.06. The tech-heavy Nasdaq Composite Index dropped 14.84 points, or 0.13%, to 10,778.80.

The Wall Street extended losing streak amid concerns over another wave of coronavirus cases as the U.K. reportedly considers another national lockdown to stop an increase in infections. Top U.K. government scientists said that, without further action, the country's infection rate could reach 50,000 per day.

 

In addition to coronavirus news, the death of Supreme Court Justice Ruth Bader Ginsburg also appeared to be weighing on the markets as it is feared a fight over the nomination of her replacement could lead to further delays in the passage of another coronavirus relief bill. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired.

Shares of banks and financials declined after a report found that a number of global banks moved allegedly illicit funds. Shares of Deutsche Bank dropped 8.5%, while JPMorgan Chase fell 3.3%.

Among Indian ADR, Azure Power Global declined 1.43% to $32.42, Wipro shed 0.42% to $4.73, and Tata Motors fell 5.57% to $9.33. HDFC Bank fell 1.84% to $48.09, Dr Reddys Labs erased 3.63% to $69.78, ICICI Bank was down 3.29% to $9.71, and Vedanta fell 1% to $6.92. WNS Holdings dropped 3.65% to $61.24. INFOSYS added 0.81% to $13.61.

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