Wall Street’s main indexes closed lower on Monday as concerns about new lockdowns in Europe and possible delays in fresh stimulus from Congress raised fears the U.S. economy faces a longer road to recovery than previously hoped for.
The death of U.S. Supreme Court Justice Ruth Bader Ginsburg also appeared to make the passage of another stimulus package in Congress less likely before the Nov. 3 presidential election, sparking large declines in the healthcare sector.
The Dow shed as much as 900 points and the CBOE Market Volatility index .VIX, Wall Street’s fear gauge, shot up to its highest level in nearly two weeks. The S&P 500 ended down less than 9% from its record high on Sept. 2 after paring losses that had pushed the benchmark almost into corrective territory.
Economic concerns are weighing most heavily on stocks, said David Joy, chief market strategist at Ameriprise.