Stocks on Wall Street dropped sharply on Monday as surging coronavirus cases around the globe and a cloudy outlook for a fiscal stimulus package out of Washington dented confidence in an economic recovery in the U.S.
The S&P 500 posted its biggest daily decline in four weeks, while the Dow fell nearly 650 points, as the United States, Russia, France and many other countries set records for COVID-19 infections, forcing some to impose new restrictions.
Meanwhile, a fresh economic relief package to help combat the economic fallout from the coronavirus remains locked in a standstill... yet House Speaker Nancy Pelosi's spokesman said she is hopeful a deal can be reached before the election.
Investors are set to hear from the world's biggest tech companies this week about how they fared during the third quarter, with the likes of Amazon, Apple and Microsoft reporting results.
Considering Monday's market drop, Hilary Kramer of Kramer Capital Research says it's vital the tech companies do well.
"It's so important to how the stock market will do because trillions of dollars are in ETFS and these exchange traded funds are filled with big, big tech names, just those handful of names -- Apple, Microsoft, Amazon, Netflix. Just take a look at what happened this morning while America was still sleeping, SAP, which is the Microsoft of Germany, reported and warned with guidance and the stock is down 24%, SAP is a massive company."
SAP abandoned its medium-term profitability targets and warned of a longer-than-expected recovery time due to the pandemic, while toymaker Hasbro tumbled 9% as revenue fell due to coronavirus-led delays in production of movies and TV shows.