By Yasin Ebrahim
Investing.com – The Dow plunged Monday as tensions between the US and China worsened. The Trump administration is reportedly considering blacklisting two major Chinese companies.
It fell 1.3%, or 385 points, but still remained on track to its biggest monthly gain since 1987. That fell 0.76% while that fell 0.32%.
Sentiment for stocks started the week softly after reports that Chinese chipmaker SMIC and national offshore oil and gas producer CNOOC (NYSE 🙂 might ban access to US investors
In addition to mounting tensions between the U.S. and China, profit-taking on value stocks also weighed on sentiment amid concerns over a surge in infections in the coming weeks after Thanksgiving.
"There will almost certainly be an increase due to what happened on the trip," said Dr. Anthony Fauci, leading infectious disease expert, told CNN's State of the Union.
Energy was among the biggest declines in the value-added sector, driven by the weakness in oil prices when large producers met to discuss whether to deepen production cuts that helped limit the blow of falling demand as a result of the pandemic.
The industry was also in the red as airlines declined sharply on a weaker outlook from JetBlue.
JetBlue Airways (NASDAQ 🙂 fell 3% after fourth quarter revenue was 70% year-over-year, compared with previous forecast of a 65% decline.
The company said booking trends remain volatile and the expected revenue recovery will be non-linear in the fourth quarter and beyond.
American Airlines Group fell 4% (NASDAQ 🙂 Delta Air Lines (NYSE 🙂 fell 1%, while United Airlines (NASDAQ 🙂 rose 0.5%.
Tech, meanwhile, kept its grip on the broader market as the Fab 5 continued to stutter, with the exception of Apple (NASDAQ :).
Amazon.com (NASDAQ :), Facebook (NASDAQ :), Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 were in the red.
In the economic sector, the Federal Reserve announced that it would extend four of its loan programs, which should expire at the end of the year by the end of the first quarter.
In other news, Salesforce.com (NYSE 🙂 is expected to announce the acquisition of Slack Technologies (NYSE 🙂 on Tuesday after the market closes, CNBC reported, citing sources.
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