Stocks fell on Monday and Wall Street broke last week’s records, with investors worried about new political and economic risks and the resurgence of the coronavirus.
Democrats in the U.S. House of Representatives on Monday presented an impeachment article against President Donald Trump, accusing him of “inciting insurrection” after the deadly Capitol invasion last week.
The Dow Jones Industrial Average fell 89 points, or 0.29%, to 31,008, the S&P 500 fell 0.66% and the Nasdaq fell 1.25%.
Boeing (BA) – Get report dropped 1.5% after a Boeing 737-500 passenger plane operated by Sriwijaya Air crashed on Saturday offshore Indonesia after taking off from Jakarta. The plane, a 737-500 aircraft, was much older than the Boeing 737 MAX, which landed in March 2019 after two fatal accidents.
The stock closed at record levels on Friday, with investors assessing expectations of further economic stimulus after a weaker-than-expected US employment report. The US lost 140,000 jobs in December, ending seven months of job growth.
During the week, the Dow rose 1.6% – the fourth consecutive weekly gain on the blue-chip index – the S&P 500 rose 1.8% and the Nasdaq gained 2.4%.
Last week’s gains were fueled by the hope that President-elect Joe Biden would support an economy destroyed by the coronavirus pandemic with more fiscal stimulus. Biden said he would present his proposals for more fiscal support on Thursday.
The gains in the stock market were also driven by optimism about the launch of coronavirus vaccines, even as infections continue to increase and scientists discover new variants of the virus.
Chris Larkin, managing director of trade and investment for E-Trade products, said that cyclical areas of the market could benefit from further stimulus and hopes for a faster economic recovery.
“And with the earnings season starting with big names in the financial sector at the end of the week, we could get a preview of what’s to come,” he added.
Large banks like JPMorgan Chase (JPM) – Get report, Citigroup (Ç) – Get report and Wells Fargo (WFC) – Get report will be issuing earnings reports later in the week.
Meanwhile, when Trump starts his last full week in office, calls for him to step down after the Capitol invasion last week by his supporters have increased.
Republicans blocked a resolution calling on Vice President Mike Pence to invoke the 25th Amendment and remove Trump from power, meaning that the House would have to call a full vote on the president’s impeachment on Tuesday.
Twitter (TWTR) – Get report fell 6.4% on Monday after the social media platform banned Trump permanently, citing concerns that Trump’s accounts could be used to incite more violence.
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