Stocks Tumble as Growth Concerns Grip Wall Street
Tourism and travel companies, which have become a proxy for investor sentiment about the risk of the pandemic, fell sharply.
Stocks tumble as growth concerns grip Wall Street.
July 8, 2021, 9:12 a.m. ET
Data delayed at least 15 minutes
By: Ella Koeze
Stocks fell on Thursday, and bond yields dropped, as investor anxiety over the bumpy economic recovery rippled through financial markets.
The rise of the highly contagious Delta variant of the coronavirus has served as a reminder that the pandemic remains a threat to public health and the economy alike. Though infections and deaths in the United States are far below rates from earlier this year, on Wednesday, the Centers for Disease Control and Prevention estimated that the Delta variant now accounts for more than half of new infections in the United States.
Tourism and travel companies, which have become a proxy for investor sentiment about the risk of the pandemic, tumbled on Thursday. Carnival Corporation, Norwegian Cruise Line and American Airlines were each down more than 3 percent in early trading.
“There’s growing concern on how robust the economic recovery will be,” said Edward Moya, senior market analyst Oanda, a foreign currency exchange. “The virus spread in other countries is starting to suggest we won’t have a strong second half of the year.”
Investors also parsed the latest economic figures from the Labor Department, which reported that number of new claims for state unemployment rose slightly, to 370,000, compared with 350,000 expected by economists.
The S&P 500 dropped more than 1 percent, on track for its biggest daily decline since mid-June, and the yield on 10-year Treasury notes fell to 1.3 percent.
Stocks in Europe were also sharply lower, with the Stoxx 600 Europe dropping 1.8 percent and the The FTSE 100 in Britain and the DAX in Germany were both down nearly 2 percent.
Oil prices also fell on Thursday. West Texas Intermediate, the U.S. crude benchmark, fell 0.4 percent to $71.88 a barrel.