December 15th, 2015

Dow tumbles 510 points amid bombshell bank report, virus fears

NYSE Trader worried redBrendan McDermid/Reuters

Summary List Placement
  • Stocks fell on Monday lower amid fears of a COVID-19 resurgence and the publication of an investigative report on large banks.
  • Major indexes pared losses in late trading. The Dow Jones industrial average slid 510 points after plummeting as much as 942 points earlier in the session.
  • Healthcare stocks were among the biggest decliners following the death of Supreme Court Justice Ruth Bader Ginsburg. Investors are sizing up the impact it could have on the Affordable Care Act.
  • Heightened political uncertainty has raised doubts about another round of stimulus before the November presidential election.
  • Watch major indexes update live here.

US stocks tumbled on Monday as investors grappled with a range of headwinds including rising COVID-19 cases, a possible "mini lockdown" in the UK, and allegations of money laundering at big-name banks.

Major indexes pared losses in late trading. The Dow Jones industrial average slid 510 points after plummeting as much as 942 points earlier in the day.

Political uncertainty continues to be front and center for investors ahead of the presidential election in November and is heightened following the death of Supreme Court Justice Ruth Bader Ginsburg on Friday.

Here's where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: Tony Greer made 5 times his money with an early investment in Apple. The macro investor and ex-Goldman Sachs trader provides an inside look into his trading tactics and shares his top 3 ideas right now.

Reports from the UK suggested that another lockdown there due to rising COVID-19 cases is not out of the question as Prime Minister Boris Johnson considers it as a "circuit breaker" for the virus.

Bank of America, Wells Fargo, Citigroup, JPMorgan, and other bank stocks traded sharply lower on Monday following a BuzzFeed News report that exposed $2 trillion in suspicious transactions and allegations that banks enabled money laundering by criminal networks.

Read more: GOLDMAN SACHS: Buy these 21 stocks on track for years of market-beating growth that could make them future giants — even rivals to the FAANGs

Healthcare stocks also sold off on Monday as investors weighed the potential that a conservative-leaning Supreme Court could strike down the Affordable Care Act. UBS provided insight into what the healthcare sector could face in the wake of Ginsburg's death.

The roller-coaster ride in Nikola continued on Monday as shares plummeted following an announcement that Trevor Milton stepped down as executive chairman.

ByteDance, the owner of TikTok, is seeking a valuation of its popular social-media app of as much as $60 billion, according to Bloomberg.

Read more: Morgan Stanley wealth management's head of market research told us a risk to longer-term assets that investors are most overlooking as the economy recovers — and recommends 3 portfolio shifts for sustained gains

The IPO market remains open following the trading debuts of tech names like Snowflake and JFrog last week. Jack Ma's Ant Group will seek to raise $35 billion in its initial public offering, which would make it the largest ever, according to Bloomberg.

Gold fell as much as 3.5%, to $1,882.51 per ounce, falling below the range of $1,900 to $2,000 where it had been for weeks. Treasury yields traded mostly flat, while the US dollar gained ground.

Oil prices slid as investors continued to weigh reports of a supply glut and lower demand heading into the fall. West Texas Intermediate crude fell as much as 6%, to $38.66 per barrel. Brent crude, oil's international benchmark, decreased 5.1%, to $40.96 per barrel, at intraday lows.

Read more: An ex-Wall Street chief strategist says the market's comeback has made most investors 'blissfully unaware' of its real risks — and lays out 6 reasons why another free-fall is on the cards

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