Dow Down 700 Points, Bank Stocks Fall

Paulina Likos

Continued bursts in the number of coronavirus cases across the country in states like Florida, Texas and California bring further delays in reopening businesses is spooking investors, putting pressure on the broader market and overall economy.

All 11 S&P sectors closed in the red on Friday. The Dow Jones Industrial Average sank 2.8% to 25,015, the S&P 500 dropped 2.4% to 3,009 and the Nasdaq tumbled by 2.6% to 9,757, having its worst day since June 11. Overall, this was an ugly day.

New to market. Albertsons (ACI) made its market debut on the New York Stock Exchange. The supermarket company's performance was less than stellar, trading lower on the stock market on Friday.

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The company decided to move forward with its initial public offering yesterday valued at $800 million and priced at $16 per share, a scale down from expectations of $18 to $20 per share.

So much for in-store shopping. Microsoft ( MSFT) announced Friday that the company has permanently closed 83 retail stores in the U.S. and internationally. The company plans this move as sales have shifted increasingly online.

Microsoft's closures may be foreshadowing a trend that other large retailers may pursue, closing physical operations and moving businesses to just the e-commerce space.

Yeezy fashion. Gap ( GPS) shares surged today, with an 18% increase in price at closing, following the announcement of the apparel company's collaboration with rap superstar and designer Kanye West. It was disclosed that this 10-year partnership and the reveal of the "Yeezy Gap" apparel line is set to take place in 2021.

Bank stocks fall. The Federal Reserve said on Thursday it would cap share buybacks and dividends by America's biggest banks after its stress tests showed that the pandemic could trigger up to $700 billion of loan losses. As a result, some of the largest banks' stock shares like Wells Fargo ( WFC) fell 7%, JPMorgan Chase & Co. ( JPM) shares falling 5.5% and Goldman Sachs ( GS) dropping more than 8%.

Paulina Likos is an investing reporter at U.S. News & World Report, covering investing and asset management. Before beginning her career as an investing reporter, Paulina graduated from Villanova University where she studied political science, communication and business management. Out of college, Paulina spent several years as a risk manager at Fannie Mae, predicting and reducing credit risk for the company.

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