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Investing.com — U.S. stock markets started the new week as they ended the old one – with sharp declines, driven by concerns about a return of the Covid-19 virus as the northern hemisphere moves toward winter, and by concerns that a number of tech stocks may not be worth the astronomical valuations they’ve enjoyed during the summer.
Reports of chronically lax compliance with anti-money-laundering rules by banks, and the resignation of Nikola chairman Trevor Milton under allegations of fraud, further soured the mood, while the market waited for a speech by Federal Reserve Chairman Jerome Powell.
By 9:35 AM ET (1335 GMT), the Dow Jones Industrial Average was down 550 points or 2.0% at 27,107 points, while the S&P 500 was down 1.7% and the Nasdaq Composite was down 1.6%.
Nikola (NASDAQ:NKLA) stock was the most prominent name in the red, falling 21% to a four-month lower after Milton’s resignation. General Motors (NYSE:GM), which had invested $2 billion in an 11% stake in Nikola only two weeks ago, fell 4.5%.
