World Market Update

 S&P 500 Tumbles in Worst Stock Rout in Four Months: Markets Wrap

Stocks tumbled in the U.S. and Europe as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic.

The S&P 500 Index fell 3.5%, the biggest drop since June, amid a surge in Covid-19 hospitalizations, especially in the Midwest. Energy shares sank with oil prices, and technology stocks were also among the worst performers, with Microsoft Corp. down after a disappointing forecast. The VIX Index, a measure of expected U.S. equity volatility, climbed to the highest level since June.

Asian stocks looked primed for losses after shares tumbled in the U.S. and Europe, as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic. Futures pointed lower in Japan, Australia and Hong Kong. The S&P 500 lost 3.5% for its biggest drop since June, while a gauge of U.S. equity volatility surged. The dollar rose against every G-10 peer save the yen, with the Aussie among the weakest performers. Treasuries were little changed, while gold declined. Oil fell more than 5%.

Main moves in markets:

Stocks

The S&P 500 Index dropped 2.8% as of 4 p.m. New York time.

The Stoxx Europe 600 Index decreased 3%.

The MSCI Asia Pacific Index fell 0.5%.

Currencies

The Bloomberg Dollar Spot Index increased 0.6%.

The British pound declined 0.5% to $1.2981.

The Japanese yen gained 0.1% to 104.35 per dollar.

Bonds

The yield on 10-year Treasuries was little changed at 0.77%.

Germany’s 10-year yield fell one basis point to -0.63%.

Britain’s 10-year yield decreased two basis points to 0.21%.

Commodities

West Texas Intermediate crude sank 5.6% to $37.36 a barrel.

Gold weakened 1.6% to $1,878.26 an ounce.