Day Traders Diary
The major averages dropped on the first trading day of 2021, amid concerns about global coronavirus cases and the Georgia runoff elections. The Dow Jones Industrial Average traded down 382 points, or 1.25%. At one point, the Dow was down more than 700 points. The S&P 500 dipped 55 points or 1.48% while the Nasdaq Composite slid 189 points or 1.47%. Both the Dow and S&P 500 hit record highs at the open.
The Dow and S&P 500 were on pace for their biggest one-day sell-off since Oct. 28, while the Nasdaq was headed for its worst daily performance since Dec. 9. Coca-Cola and Boeing were the worst-performing Dow components, falling 5.2% and 3.7%, respectively. Real estate fell 2.8% to lead the S&P 500 lower.
Wall Street was keeping an eye on Georgia as the state prepares for Senate runoff elections on Tuesday, which could give Democrats a majority in the chamber.
In the U.K., Prime Minister Boris Johnson imposed a national lockdown on England to curb the spread of the new coronavirus variant. As part of the new restrictions, people can only leave their homes for essentials, work if they can't from home and exercise. Most schools will also move to remote learning, including universities.
Data compiled by Johns Hopkins University showed more than 85 million coronavirus cases have been confirmed globally, including 20.7 million in the U.S. and 2.7 million in the U.K.
The 30-stock Dow ended last year with an advance of 7.3%, and the S&P 500 rose 16.3% in that time. At one point in 2020, the two market benchmarks were down more than 30% as the coronavirus pandemic ravaged the global economy.
The real standout of 2020 was the Nasdaq Composite, which surged 43.6% for its biggest one-year gain since 2009. The Nasdaq's outperformance came as investors and traders flocked into tech stocks in the throes of the Covid-19 outbreak.
The 2-yr yield finished flat at 0.12%, and the 10-yr yield finished flat at 0.92% after touching 0.95% in the morning. The U.S. Dollar Index finished flat after being down 0.6% intraday.
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