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The Dow Jones Industrial Common dropped 509 factors Monday following a report that giant international banks had been concerned in transactions flagged as attainable cash laundering.
And hopes for an additional aid measure from Congress flagged as lawmakers targeted on the fight over a Supreme Court docket nomination following the demise of Justice Ruth Bader Ginsburg.
The Dow fell 1.8%, to 27,147, and the broader S&P 500 index slid 1.2%. The Nasdaq composite index closed down 0.1%. All three indexes had been down extra sharply earlier Monday.
Financial institution shares fell after a news report that JPMorgan Chase, Deutsche Financial institution and different large banks defied cash laundering crackdowns. JPMorgan Chase fell greater than 3%, Citigroup was down 2.2% and HSBC was down almost 6%.
A surge in COVID-19 instances in the United Kingdom raised fears of one other lockdown there. Lockdowns have ripple results that damage a number of industries, together with journey. Airways shares plummeted Monday, with United Airways down almost 9% and American Airways down 7.4%.
Shares have had a tough September. The Dow has fallen almost 5% to date this month.
One other issue weighed in the marketplace Monday. Over the weekend, China introduced guidelines for a brand new regulatory physique that might blacklist overseas corporations that unfairly deal with Chinese language corporations or pose a menace to Chinese language nationwide safety, NPR’s Emily Feng reported.
China has not but stated which corporations could be labeled “unreliable entities,” however Chinese language state media have urged that U.S. tech corporations, together with Apple, Qualcomm and Cisco, could be thought-about. U.S. tech shares, which led the market to new information, have been sliding in latest weeks.
The U.S. financial slowdown amid the coronavirus pandemic additionally continues to fret traders. Retail gross sales grew extra slowly in August after an additional $600 per week in federal unemployment advantages expired.
The Federal Reserve has minimize rates of interest to historic lows and stated it expects to maintain them down by at least 2023, however Congress has been deadlocked about offering further pandemic financial help. The talk over whether or not President Trump must be allowed to name a successor to Ginsburg may dampen hopes for a aid deal.