Stocks drop on Covid concerns, OPEC+ deal
The week began on a sour note as stocks sold on a variety of catalysts Monday. The major reason was the recent rise in Covid cases from the Delta variant in parts of the U.S. and Europe, including the U.K. Hospitalizations are rising in American states that lag in vaccinations. The Dow plunged over 2% (its worst day since last October), the Nasdaq by half that, while the S&P finished at -1.58%, albeit off sessions lows. Most sectors were impacted, especially energy, financials and materials.
Boeing dove 4.88%, Marathon Oil tanked 5.36% and JPMorgan tumbled 3.31%. Pockets of positivity included Nvidia up 3.41%, Moderna which popped 9.48% and stay-at-home winner Peloton 7.14%. As investors marched back into bonds, the U.S. 10-year yield dipped nearly 8% to 1.1905%. Meanwhile, Bitcoin lost 3% to fall below $31,000.
On top of that, OPEC+ ended its internal spat to agree on oil production hikes. The price of WTI crude slid 7.69% to $66 per barrel as WCS plunged 10% to $52. Naturally, oil’s woes pressured the TSX, which closed -1.32% and also saw selling across sectors. Crescent Point Energy finished -4.93%, Manulife -1.83%, Suncor -4.12% and Air Canada -3.34%. Aritzia was one of the few gainers Monday, up 1.38%. The Canadian dollar slipped 1% to 78.48 cents.
🛫 Boeing -4.88%
🛢 Marathon Oil -5.36%
🏛 JP Morgan Chase & Co -3.31%
💾 Nvidia Corp +3.41%
💉 Moderna +9.48%
🚲 Peloton Interactive +7.14%
🅱 The Bitcoin Fund -3%
🛢 Crescent Point Energy Corp -4.93%
🏛 Manulife Financial -1.83%
🛢 Suncor Energy Inc -4.12%
🛫 Air Canada -3.34%
👗 Aritzia Inc. +1.38%
