US Stocks extend losses on Monday

The US stocks dived deeper on Monday, 19 July 2021, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all slid into negative terrain, as anxiety mounted over the spread of the Delta coronavirus variant and its potential impact on the global economy drove investors out of risky assets. Meanwhile, selloff fuelled further as tensions with China escalated after the U.S. and its allies connected the Microsoft Exchange hack to actors affiliated with the Chinese government.

At the close of trade, the Dow Jones Industrial Average index fell 725.81 points, or 2.09%, to 33,962. The S&P 500 index dropped 68.67 points, or 1.59%, at 4,258. The tech-heavy Nasdaq Composite Index was down 152.25 points, or 1.06%, to 14,275.

 

All 11 S&P 500 sectors declined, with energy (down 3.59%) sector was worst performer, worries about future demand and by an OPEC+ agreement to increase supply, followed by Financial (down 2.8%) as U.S. Treasury bond yields tumbled to five-month lows and materials (down 2.18%) as base metal price declined due a surge of the delta coronavirus variant threatened the rebound in the global economy. Meanwhile, industrials (down 2.14%), communication services (down 1.65%), real estate (down 1.59%), and utilities (down 1.59%) issues were also notable losers.

The sell-off on Wall Street partly reflected concerns about a resurgence of the coronavirus, as the delta variant contributes to a spike in infections in the U.S. According to data from the CDC, the 7-day average of Covid-19 cases in the U.S. has jumped to nearly 30,000 after falling as low as 11,455 a month ago.

ECONOMIC NEWS: US Homebuilder Confidence Dips In July- US Housing Market Index edged down to 80 in July from 81 in June, the National Association of Home Builders reported on Monday. With the unexpected drop, the housing market index slipped to its lowest level since hitting 78 in August of 2020. The unexpected decrease by the housing market index came as the component measuring traffic of prospective buyers tumbled to 65 in July from 71 in June. The index gauging current sales conditions also edged down to 86 in July from 87 in June, while the gauge charting sales expectations in the next six months rose to 81 from 79.

Among Indian ADR, Tata Motors fell 1.42% to $20.09, INFOSYS fell 1.05% to $20.64, Vedanta fell 3.62% to $13.81, Dr Reddys Labs shed 0.1% to $72.39, WNS Holdings fell 1.45% to $78.43, ICICI Bank shed 2.27% to $17.23, and HDFC Bank fell 7.2% to $69.22. Wipro dropped 0.98% to $8.07.

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