Investors fear the spread of the coronavirus’ Delta variant could disrupt the global economic recovery causing the Dow to plunge more than 700 points on– in addition to new worries over inflation and oil prices.
The Dow Jones industrial average finished the session down 725 points, or 2.1 percent, at 33,962, marking it the worst day for the blue-chip index since October. The S&P 500 and Nasdaq also slumped 1.6% and 1.1%, respectively.
The sharp drops continued for most of the day with drops as low as 950 points for the Dow –marked a reversal from the highs seen last week when the Dow briefly marked a new high above 35,000.
Over the last week, new cases have climbed as the ultra-contagious Delta variant now becomes the dominant strain. While cases are primarily spreading among populations with low vaccination rates, even states with a majority of residents vaccinated like California are implementing new restrictions.