Pandemic worries fuel a huge selloff of stocks

Pandemic worries fueled a massive selloff of stocks Monday amid rising fears that a new and damaging surge of coronavirus driven by the virulent delta variant could drag the local and global economies back into a fullblown crisis.

The S&P 500 fell 68.67, or 1.6%, to 4,258.49, after setting a record just a week earlier. In another sign of worry, the yield on the 10-year Treasury note touched its lowest level in five months as investors scrambled for safer places to put their money.

The Dow Jones industrial average slumped 725.81, or 2.1%, to 33,962.04, while the Nasdaq composite lost 152.25, or 1.1%, to 14,274.98.

The travel and leisure industries took some of the heaviest losses, similar to the early days of the pandemic in February and March of 2020. United Airlines lost 5.5%, and cruise operator Carnival fell 5.7%.

Even in the U.S., where the vaccination rate is higher than in many other countries, people in Los Angeles County must once again wear masks indoors regardless of whether they’re vaccinated following spikes in cases, hospitalizations and deaths.

Across the country, the daily number of COVID cases has soared by nearly 20,000 over the last two weeks to about 32,000, and while the financial markets have been showing signs of concern, the U.S stock market remained resilient overall — that is, until Monday.

Besides the new variants of coronavirus, other risks to the economy include fading pandemic relief efforts from the U.S. government and a Federal Reserve that looks set to begin paring back its assistance for markets starting in September.

The American Academy of Pediatrics also announced it would recommend students returning to physical school in the fall should all wear masks indoors to limit the spread.

Dr. Anthony Fauci praised the edict, noting that most children are not eligible to be vaccinated and are unprotected against the delta variant.

“When you have a population that is substantially unvaccinated, you want to go the extra mile to protect them. You want to err on the side of safety,” Fauci told CNN. He added there is little doubt that hospitalizations and deaths will also soon rise dramatically as the delta variant spreads even more widely.

Rep. Vern Buchanan (R-Fla.) announced Monday he tested positive for COVID-19 and was experiencing mild flulike symptoms, despite being fully vaccinated.