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Stocks Add to Last Week's Sharp Losses

GAP

Stocks dropped on Monday as investors grapple with signs of a second wave of coronavirus cases as the U.S. economy reopens.

The Dow Jones Industrials went down 397.84 points, or 1.6%, to 25,207.68.

The S&P 500 plummeted 33.30 points, or 1.1%, to 3,007.93.

The NASDAQ subtracted 40.99 points to 9,547.82.

Stocks which stand to benefit the most from a successful reopening led the losses. Carnival and Royal Caribbean cruise lines each lost more than 7%.

United Airlines lost 7.9% and American Airlines slid 7.6%. Retailers Kohl's and Gap declined. These types of stocks surged in May as investors bet that the worst of the virus was over.

States in the reopening process including Alabama, California, Florida and North Carolina are reporting a rise in daily new coronavirus cases. Texas and North Carolina reported a record number of virus-related hospitalizations Saturday.

Meanwhile, Governor Andrew Cuomo warned New Yorkers against triggering a second wave of the coronavirus. He said on Sunday the state has received 25,000 complaints about businesses violating rules of the phased reopening, threatening to take liquor licenses from bars and restaurants.

Prices for the 10-Year Treasury gained ground, lowering yields to 0.68% from Friday's 0.69%. Treasury prices and yields move in opposite directions.

Oil prices slumped $1.33 to $34.93 U.S. a barrel.

Gold prices ducked $24.50 to $1,712.80 U.S. an ounce.



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