Wall St. witnesses brutal sell-off wave as Delta variant stokes new lockdown fears

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Wall St. witnesses brutal sell-off wave as Delta variant stokes new lockdown fears

On Monday, all three key indices of Wall St. had wrapped up the session in a red sea of Nile with investors’ morale having been brutally slaughtered, as a rapid insurgence of Delta variants across the United States appeared to have spooked pandemic-wary Americans while jittering frets over the pace of economic recovery.

In point of fact, in the day’s broad-based sell-off wave in the Wall Street was almost entirely catalysed by growing investors’ worries that the economy might not be reopening as earlier as anticipated while driving angsts over possibilities of a renewed lockdown in a swathe of US states.

Alongside this, a remark from the US President Joe Biden that largely backed the US Fed Chair Jerome Powell’s dovish monetary policy stance made little or no impacts, eventually dragging down all three key indices of Wall Street with S&P 500 and Nasdaq having suffered their largest intra-session declines since mid-May.

Trade-sensitive Dow had witnessed the steepest plunge in roughly nine months, while a risk-aversion trend had skyrocketed the greenback against a number of risk-sensitive currencies such as the Aussies, Kiwis and Canadian Dollar among others.

The 10-year Treasury bond Yields fell to a five-month low of 1.17 per cent.

Wall St. ends sharply lower as delta variant fret jitters

Quoting statistics, in the day’s Wall Street round off, trade-sensitive Dow dived 2.09 per cent to 33,962.04 and benchmark S&P 500 shed 1.59 per cent to 4,258.49, while tech-heavy Nasdaq was nudged as much as 1.06 per cent lower to 14,274.98.

Meanwhile, adding that the day’s Wall Street was largely moved by a risk-off approach from the market participants, a portfolio manager at Kingsview Asset Management in Chicago, Paul Nolte said, “Much of it is related to the Delta (variant).

There’s some concern too that maybe the economy is not going to open up as quickly as everyone thinks, and the big boom that everyone’s expecting is going to be more of a pop than a boom”.