Virus Threat Overshadows Election, Earnings in Market Selloff
- Stocks slump, volatility spikes amid worsening virus trends
- Covid is the most important story now, says Fundstrat’s Lee
Source: iStockphoto
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The U.S. presidential election has kept markets on edge for months, but with just days to go until the vote, it was the year’s other dominating story that reclaimed its hold on investor sentiment.
A surge in coronavirus cases and the attendant concern that economic growth will slump drove the S&P 500 to its worst day since June. Investors dumped shares of companies that need a robust recovery, with an index tracking airlines tumbling more than 6% and a gauge of restaurants sinking 3.6%. The Cboe Volatility Index jumped to its highest level in four months, while the yen rose.