Stocks fell Monday and Wall Street came off last week’s records as investors worried about fresh political and economic risks and a resurgence of the coronavirus.
Democrats in the U.S. House of Representatives on Monday introduced an article of impeachment against President Donald Trump, charging him with “incitement of insurrection” following last week’s deadly invasion of the Capitol.
The Dow Jones Industrial Average declined 89 points, or 0.29%, to 31,008, the S&P 500 fell 0.66% and the Nasdaq was down 1.25%.
Boeing (BA) – Get Report fell 1.5% after a Boeing 737-500 passenger plane operated by Sriwijaya Air crashed on Saturday into the sea off the Indonesian coast after taking off from Jakarta. The plane, a 737-500 aircraft, was much older than the Boeing 737 MAX, which was grounded in March 2019 after two fatal crashes.
Stocks finished at records on Friday as investors assessed expectations for more economic stimulus following a weaker-than-expected U.S. jobs report. The U.S. lost 140,000 jobs in December, putting an end to seven months of employment growth.
For the week, the Dow rose 1.6% — the blue-chip index’s fourth-straight weekly gain — the S&P 500 added 1.8% and the Nasdaq gained 2.4%.
Last week’s gains were fueled by hopes that President-elect Joe Biden would support an economy wracked by the coronavirus pandemic with more fiscal stimulus. Biden said he would lay out his proposals for further fiscal support on Thursday.
Stock-market gains also have been driven by optimism about the rollout of coronavirus vaccines, even as infections continue to surge and scientists discover new variants of the virus.
Chris Larkin, managing director of trading and investing product at E-Trade, said cyclical areas of the market could benefit from more stimulus and hopes for a quicker economic recovery.
“And with earnings season kicking off with big financial names at the end of the week, we could get a preview on what’s to come,” he added.
Meanwhile, as Trump begins his final full week in office, calls have been growing for him to step down following last week’s storming of the Capitol by his supporters.
Republicans blocked a resolution calling on Vice President Mike Pence to invoke the 25th Amendment and strip Trump of power, meaning that the House would have to call a full vote on impeaching the president on Tuesday.
Twitter (TWTR) – Get Report declined 6.4% Monday after the social media platform permanently banned Trump, citing concerns that Trump’s accounts could be used to incite more violence.