Stocks fell sharply on Monday as bank stocks tumbled after a report of suspicious transactions and as investors worried, a global recovery could be hampered by a rise in coronavirus infections and a subdued outlook for another US fiscal stimulus bill.
Bank shares rolled on Monday after a report said JPMorgan Chase (JPM) – Download report, Deutsche Bank (DB) – Download report and other financial companies had defied money laundering, even after being fined by US authorities. JPMorgan fell 4.33% to $ 94.10.
The report by the International Consortium of Investigative Journalists found that five global banks were moving “staggering sums of illegal cash for shady characters and criminal networks that have spread chaos and undermined democracy around the world.”
The Dow Jones Industrial Average fell 882 points, or 3.19%, to 26,775, the S&P 500 fell 2.46% to its lowest level since July and the Nasdaq fell 2.02%.
The S&P 500 fell for a fourth consecutive session. Stocks have decreased in the first three weeks of September.
“Investors should take a binary approach to the market at this point. Stay bullish but raise some money when technology stocks bounce in the short term,” said Marc Chaikin, founder of Chaikin Analytics. “Look for opportunities to relocate cash as this short-term withdrawal is played out over the next two to four weeks. ”
Global coronavirus infections have exceeded 31 million, and US cases account for 6.81 million of the total. According to Johns Hopkins University, 200,000 deaths were approaching in the United States.
In the UK, cases of coronavirus have seen a significant increase. On Sunday, the government reported new infections of 4,422, the largest daily increase since early May. An official estimate showed that new cases and hospitalizations have doubled every week, the Associated Press reported.
In the United States, little progress has been made with a new coronavirus stimulus package, as Republicans and Democrats remain at a standstill. The negotiations could become even more complicated after the death of Supreme Court Judge Ruth Bader Ginsburg, as lawmakers prepare for what could be a historic nomination battle ahead of the November election.
President Donald Trump said he would nominate a woman this week as his successor to Ginsburg.
Nikola (NKLA) – Download report Shares fell 21.85% to $ 26.72 after founder Trevor Milton resigned as CEO following reports last week that the Securities and Exchange Commission was investigating the start of the electric vehicle for fraud allegations by card seller Hindenburg Research.
Milton, who founded Nikola in 2014, was replaced by board member Stephen Girsky, who was appointed chairman.
Girsky is the former Vice President of General Motors (GM) – Download report, which earlier this month agreed to acquire a $ 2 billion stake in Nikola and make its new pickup. GM fell more than 7% in trading on Monday.