A drop in energy stocks dragged the Dow and S&P 500 down Monday from record levels.
Investors grew concerned about fuel demand after seeing a spike in coronavirus cases and new business restrictions especially in China, the world’s second biggest consumer of oil.
Chevron was the leading decliner on the Dow, which ended three tenths of a percent lower.
The S&P dipped a tenth of a percent. But the Nasdaq finished up nearly two-tenths of a percent on gains by vaccine makers Moderna, BioNTech and Novavax.
ClearBridge Investments Investment Strategist Jeffrey Schulze:
“The markets are being moved by Delta fears and this is clearly evident in the oil markets. You're seeing a continued sell off from the end of last week as a lot of Asian economies are shutting down or pulling back their economic reopening. But I think that this is a buy-the-dip type of opportunity. And the one reason why I say that I think Delta cases are peaking here in the U.S.”
Shares of Norwegian Cruise Line, a company that has been slammed by the health crisis, fell nearly 1% despite a favorable court decision.
A federal judge ruled Sunday that the cruise operator can demand that passengers show proof of vaccination before boarding a ship.
The judgement dealt a big blow to Florida Governor Ron DeSantis’ effort to ban so-called “vaccine passports.”
Shares of poultry producer Sanderson Farms gained 7%, after it agreed to be bought by commodities trader Cargill and investment firm Continental Grain for $4.5 billion.
Shares of its rival, Tyson Foods, rose over 8%. The company raised its full-year revenue forecast due to strong demand for beef as U.S. restaurants and hotels recovered.