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First trading day of 2021: U.S. Stocks dip sharply, TESLA up as virus threat still looms



Shares on Wall Street closed sharply lower on Monday, sliding from all-time peaks on the first trading day of the year.

Investor sentiment was weak as U.S. jobless claims remain high and the discovery of the new virus stain also cast a shadow on further pandemic-related restrictions.

All three main indexes hit two-week lows, with record highs in the Dow and S&P 500 extending a 2020 rally fueled by monetary stimulus and the start of vaccine rollouts.

The Dow, which touched a record high earlier in the session along with the S&P 500, was also dragged down by a more than 4% fall in Boeing Co’s BA.N shares after Bernstein cut its rating to “underperform,” citing concerns about cash flow.

As the U.S. deaths from COVID-19 have reached greater than 350,000. all S&P sectors dropped with actual property.SPLRCR, utilities, and industrials posting the sharpest proportion declines. Shopper discretionary.SPLRD and supplies hit all-time highs in early buying and selling.

The Dow Jones Industrial Average .DJI fell 382.59 points, or 1.25%, to 30,223.89, the S&P 500 .SPX lost 55.42 points, or 1.48%, to 3,700.65 and the Nasdaq Composite .IXIC dropped 189.84 points, or 1.47%, to 12,698.45.

The S&P 500 and the Dow posted their largest daily percentage falls since late October, while the Nasdaq had its biggest loss since Dec. 9.

Tesla Inc’s TSLA.O shares extended a meteoric rally to scale a record high after the electric-car maker reported better-than-expected vehicle deliveries in 2020.

Shares of FLIR Systems Inc FLIR.O jumped more than 19%after Teledyne Technologies Inc TDY.N agreed to buy the thermal imaging camera supplier for $8 billion in cash and stock. Teledyne’s shares, however, dropped 7.5%.

Declining issues outnumbered advancing ones on the NYSE by a 2.14-to-1 ratio; on Nasdaq, a 1.43-to-1 ratio favored decliners.

The S&P 500 posted 54 new 52-week highs and no new lows; the Nasdaq Composite recorded 151 new highs and 19 new lows.

Volume on U.S. exchanges hit 14.15 billion shares, compared with the 10.94 billion average for the full session over the last 20 trading days.

“Stocks are pulling back from a stunning year of gains. We’re starting off with a virus out of control. We’ll probably be going to end 2021 with a virus that could be under control by that time. How we get from start to finish will be filled with frequent pullbacks because people will be looking at short-term headlines,” said Brian Reynolds, chief market strategist, at Reynolds Strategy.









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