Big losses knock down stocks again

Another day of big losses knocked U.S. stocks to their lowest levels in more than a year Monday.

Selling was widespread. Investors dumped highgrowth technology and retail companies as well as steadier, high-dividend companies. Hospitals and health insurers slumped after a federal judge in Texas ruled that the 2010 Affordable Care Act is unconstitutional.

The Dow Jones Industrial Average fell 507 points after a 496-point drop Friday, and all the major stock indexes fell at least 2 percent. Oil closed below $50 a barrel for the first time since October 2017. Bonds rose and their yields fell.

Investors sold almost everything. Less than 40 of the 500 stocks comprising the S&P 500 finished the day higher. Amazon led a rout among retailers and tech companies including Microsoft turned sharply lower. Some of the largest losses went to utilities and real estate companies, which have done better than the rest of the market during the turbulence of the last three months.

The S&P 500 index, the benchmark for many investors and funds, finished at its lowest level since Oct. 9, 2017. It has fallen 13.1 percent since its last record close on Sept. 20. The Russell 2000, an index of smaller companies, has dropped more than 20 percent since the end of August, meaning that index is now in what Wall Street calls a “bear market.”

Germany’s main stock index also fell into a bear market Monday as companies like Siemens and SAP kept falling.

Smaller U.S. stocks have taken dramatic losses as investors have lost confidence in the U.S. economy’s growth prospects. Smaller companies are considered more vulnerable in a downturn than larger companies because they are more dependent on economic growth and tend to have higher levels of debt.

The S&P 500 skidded 54.01 points, or 2.1 percent, at 2,545.94. The Dow Jones Industrial Average lost 507.53 points, or 2.1 percent, to 23,592.98. The Nasdaq composite fell 156.93 points, or 2.3 percent, to 6,753.73. The Russell 2000 index dipped 32.97 points, or 2.3 percent, to 1,378.14.