Investors welcomed the first trading day of the new year by selling a wide range of shares, although a recovery in the final hour has limited the day’s losses.
The Dow Jones Industrial Average fell by 725 points before recovering and ending at just 325 points, down 1.25 percent. The S&P 500 and Nasdaq Composite fell just under 1.45 percent after their own late-afternoon recovery from steeper losses.
These earlier declines followed on a morning when futures prices seemed to indicate a continuation of the stock rebound in late 2020.
It was the worst day in over two months for S&P and Dow.
Investors remain focused on increasing the coronavirus, the effectiveness of vaccination programs and the second round of the election in Georgia, which will decide to control the US Senate. There has been little news on these topics that readily explains Monday’s volatility. Likewise, there were no signs of news of changes in the market about Biden’s transition or attempts to approve another round of stimulus checks.
Ten of the 11 S&P sectors declined, with only the expired energy sector winning. The real estate sector was the weakest sector, followed by public and industrial services.
Walgreens Boots Alliance was the biggest winner on the Dow, up 3.74 percent. Walmart, Goldman Sachs, Chevron and Verizon were the other Dow winners that day. Boeing and Coca-Cola had the worst performances of the day.