Wall Street tumbled as global COVID-19 cases increase

April 21, 2021 - 4 weeks ago
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U.S. stocks on Wall Street moved lower on Tuesday, edging further from their strongest levels on record over concerns about rising COVID-19 issues worldwide.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial fell -256.33 points, or -0.8%, to 33,821.30 as Boeing and Nike both dropped more than -4%.

The broad-based Standard & Poor’s 500 Index lost -28.32 points, or -0.68% to 4,134.94 for a second straight day of declines, while the rich-tech Nasdaq Composite Index dipped -128.50 points or -0.92% to 13,786.27.

Apple Inc. launched a new iMac and iPad with its M1 chips at a spring event Tuesday, although shares slipped -1.3%.

In after-hours trading, shares of Netflix dropped -11% after the streaming giant said its first-quarter subscriber growth fell short of expectations—adding only another 4 million subscribers globally, less than its forecast of 6 million.

The 10-year U.S. Treasury yield edged down to 1.562% from 1.599% on Monday in the bond market. Yields fall as prices rise.

The yield, which has climbed from about 0.9% since the start of the year, influences borrowing costs worldwide and is highly sensitive to expectations about the central bank’s future interest rate decisions.

Shares of travel and leisure companies led the retreat as a pickup in new COVID-19 cases globally is putting a damper on sentiment after the World Health Organization warned that global coronavirus infections were edging toward their highest level in the pandemic.

News sources reported a global daily new case tally almost hit a record of more than 750,000 on Sunday and Monday, as India and Brazil remain hot spots.

The U.S. has averaged 67,175 new cases a day in the past week, up 4% from the average two weeks ago, but about 50% of U.S. adults have now received one shot of vaccine.

Johnson & Johnson shares gained 2.3% following better-than-expected earnings and revenue. The company also reported $100 million in first-quarter sales of its Covid-19 vaccine that’s on hold in the U.S. while health regulators investigate a rare blood-clotting issue.

Airline stocks were among Tuesday’s declines, with United Airlines falling -8.5%, to $50.30 after reporting weaker-than-expected results for the first quarter.

Other airlines followed, with American Airlines Group, Delta Air Lines and Southwest Airlines falling more than -3%.

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