KEY POINTS

  • Alabama, California, Florida and North Carolina  have reported a jump in new daily coronavirus cases
  • Empire State Manufacturing business conditions index climbed by 48 points to minus-0.2 in June
  • Chinese industrial production jumped by 4.4% in May

Update: 12:05 p.m. EDT:

U.S. stocks were in the red as of noon Monday, but rebounding from earlier lows.

The Dow Jones Industrial Average dropped 343.47 points to 25,262.07, while the S&P 500 fell 26.17 points to 3,015.14 and the Nasdaq Composite Index tumbled 21.69 points to 9,567.12.

In Europe markets finished lower, as Britain’s FTSE-100 dropped 0.66%, while France’s CAC-40 fell 0.49% and Germany’s DAX tumbled 0.32%.

Original story:

U.S. stocks tumbled on Monday on worries that a second wave of coronavirus cases has broken out across the U.S.

The Dow Jones Industrial Average dropped 628.52 points to 24,977.02, while the S&P 500 fell 63.21 points to 2,978.10 and the Nasdaq Composite Index plunged 153.57 points to 9,435.24.

Some states – including Alabama, California, Florida and North Carolina – have reported a jump in new daily coronavirus cases, as they prepare to reopen nonessential businesses. Texas and North Carolina recorded a surge in Covid-related hospitalizations Saturday.

New York Governor Andrew Cuomo warned he may revoke liquor licenses from bars and restaurants over complaints that these businesses have violated social distancing rules.

“The Covid deterioration in certain states will stay an overhang for the market, although it would take a sustained increase in U.S. numbers overall to spark a dramatic shift in the narrative,” said Adam Crisafulli, founder of Vital Knowledge on Sunday.

Dr. William Schaffner, a professor at the Vanderbilt University School of Medicine, warned: “The second wave has begun. We’re opening up across the country, but many, many people are not social distancing, many are not wearing their masks.”

The New York Fed’s Empire State Manufacturing business conditions index climbed by 48 points to minus-0.2 in June, much better than expected.

Chinese industrial production jumped by 4.4% in May, up from a 3.9% increase in April.

“The [stock market] meltup may need to take a break, as sentiment has turned too bullish too rapidly,” said Ed Yardeni, president and chief investment strategist at Yardeni Research, on Sunday. “Now that reopening is happening, there’s fear of suboptimal results: less social distancing triggering a second wave of the virus, followed by another round of lockdowns.”

Overnight in Asia, markets finished lower. The Shanghai Composite dropped 1.02%; Hong Kong’s Hang Seng retreated 2.16%; while Japan’s Nikkei-225 fell 3.47%.

In Europe markets traded lower, as Britain’s FTSE-100 dropped 1.44%, while France’s CAC-40 fell 1.21% and Germany’s DAX tumbled 1.24%.

Crude oil futures plunged 3.92% at $34.84 per barrel, Brent crude dropped 2.48% at $37.77. Gold futures fell 1.49%.

The euro edged down 0.08% at $1.1247 while the pound sterling dropped 0.06% at $1.2532.