Dow, S&P 500 sink 2% as virus surge stifles recovery hopes

July 19 (Reuters) – The Dow and the S&P 500 indexes sank more than 2% on Monday as investors sold off economically sensitive shares and travel stocks and sought the perceived safety of bonds on fears that a spike in COVID-19 cases would derail a broader economic recovery.

New infections surged in parts of Asia and England, while U.S. COVID-19 cases soared 70% last week, fueled by the Delta variant. read more

All 11 S&P sectors fell, with the so-called value stocks, including financial (.SPSY), industrial (.SPLRCI), materials (.SPLRCM) and energy (.SPNY), dropping between 2.5% and 4.4%.

The banking sub-index (.SPXBK) sank 3.4%, tracking a fall in the benchmark 10-year Treasury yield to mid-February lows.

“There’s concern among investors the Delta variant could reset the clock in terms of the progress we’ve made with COVID-19 and the pickup in the economy,” said Andre Bakhos, managing director at New Vines Capital LLC in New Jersey.

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Source: Reuters, Devik Jain