US stocks fell aggressively on Monday amid fears that a rebound in Covid cases would slow global economic growth. Sales picked up in the early afternoon and the Dow Jones Industrial average was heading for its biggest decline of the year.
The Dow lost 920 points, or 2.7%, outperforming a 2% decline in late January. The S&P 500 lost 2.1%, with the energy and industrial sectors the worst performers. The technology-dominated Nasdaq Composite lost 1.5%. The small-cap Russell 2000 briefly fell into correction territory, down 10.7% from its 52-week high on March 15.
The US 10-year Treasury yield fell to a new five-month low of 1.19%, adding to fears about the weakening economy. Crude oil fell more than 6%.
“Two concerns come together … technical concerns and growth concerns,” said Mohamed El-Erian, Allianz chief financial advisor and former co-CEO of Pimco, at CNBC’s opening bell of the Squawk Box. “That’s what all asset classes tell you.”