World Market Update

 S&P 500 Tumbles Most in a Month on Virus Spread: Markets Wrap

The S&P 500 Index posted its biggest drop in a month on concern rising coronavirus cases will hurt the global economy and as prospects dimmed for fiscal aid from Washington before the presidential election.

Losses for energy and industrial companies sent the benchmark gauge down 2.9% at one point, though stocks pared losses in the afternoon amid recoveries for the biggest technology companies and as House Speaker Nancy Pelosi voiced optimism on a stimulus deal. Boeing Co., Lockheed Martin Corp. and Raytheon Technologies Corp. slid on China’s plan to sanction the companies over arms sales to Taiwan.

In Europe, a gauge of tech stocks fell the most since March after German software maker SAP SE plunged 22% following a cut to its sales forecast and warnings that the pandemic will hurt business through mid-2021.

Asian stocks looked poised to open weaker Tuesday after U.S. shares tumbled on concern over rising coronavirus cases and stuttering stimulus talks. The S&P 500 Index had its biggest loss in a month. Treasuries advanced. Futures pointed lower in Japan and Australia. Ongoing fiscal spending talks in Washington continued to weigh on sentiment as prospects dimmed for fiscal aid before the presidential election. The dollar strengthened and 10-year Treasury yields slid toward 0.8%. Oil and copper declined, while gold was little changed.

Futures on the Dow Jones are currently trading 70 points higher. The index fell 2.3% on Monday. The S&P 500 too saw its biggest fall in a month.

Ongoing spending talks in Washington continued to weigh on sentiment as prospects dimmed for fiscal aid before the presidential election.

A gauge of technology stocks in Europe fell the most since March, after a 22% decline in SAP SE, following a cut to its sales forecast and a warning that the pandemic will hurt business through mid-2021.

“The reflation trade which was working so beautifully is being part unwound – not because of election repricing, but due to the new wave of Covid cases,” Chris Weston, head of research at Pepperstone wrote in a note.

Yield on the 10-year treasuries stood at 0.79%.

West Texas Intermediate crude was up 0.2% at $38.65 per barrel.