US Stock Sell-off Accelerates, Dow Loses More Than 3%

Mohammad Ali (@ChaudhryMAli88) Published October 26, 2020 | 11:20 PM

New York, (UrduPoint / Pakistan Point News - 26th Oct, 2020 ) :A sell-off on Wall Street deepened Monday afternoon amid fading hopes for US stimulus, mounting worries over the coronavirus and jitters over the November 3 US elections.

Near 1735 GMT, the Dow Jones Industrial Average had lost 3.3 percent, or nearly 950 points, dropping to 27,388.68.

The broad-based S&P 500 fell 2.8 percent to 3,366.97, while the tech-rich Nasdaq Composite Index shed 2.8 percent to 11,230.44.

The losses came as curfews and other restrictions in Europe to contain the coronavirus raised worries about additional lockdowns in the United States, while policymakers in Washington continued to attempt to reach agreement on another stimulus package with time slipping away to get it done before election day.

Analysts are worried that reaching a deal on stimulus could be impossible even after the election if former vice president Joe Biden defeats President Donald Trump but the ruling Republican party maintains control of the Senate.

"There will probably be gridlock if Biden wins but the Democrats don't take the Senate," said Gregori Volokhine of Meeschaert Financial Services.

Monday's session was especially bad for sectors tied to an economic recovery, including energy, industrials and financials.

Stimulus talks continue and Treasury Secretary Steven Mnuchin is due to hold another session with Democratic House Speaker Nancy Pelosi later Thursday to try again to break the impasse.