Stocks fell as the market opened Monday after a weekend of spiking coronavirus cases across the U.S. raised concerns about another pandemic-driven slowdown.
The Dow Jones Industrial Average opened with a loss of more than 600 points, falling 1.7 percent Monday after the opening bell. The S&P 500 fell 1.6 percent and the Nasdaq fell 1.5 percent.
Energy, financial, industrial, and technology sector companies led Monday’s losses, reflecting a range of headwinds facing those industries. Spiking COVID-19 cases could lead to declines in travel and consumer activity, a threat to energy and financial firms, while construction and broader investment could be limited by higher interest rates and a broader economic slowdown.
While health experts are still assessing how the omicron variant differs from previous strains of the coronavirus, a recent surge of COVID-19 cases has already forced cancellations, postponements and modifications across the economy.
Professional sports leagues including the NFL, NHL and NBA have delayed or rescheduled several games amid outbreaks within dozens of teams. Broadway performances and concerts have been postponed, and restaurants in several cities have scaled back to delivery only or heightened requirements for indoor dining.
Even so, some travel and hospitality sector companies — which typically suffer losses amid COVID-19 spikes — rose in the face of omicron fears, including American Airlines and Carnival Cruise Line. Stocks that typically rallied on health concerns also rose Monday, including Pfizer, Moderna, Netflix, Electronic Arts and Match.