Wall Street Opens as Covid Concerns Drive Rotation out of Value; Dow Down 110 Pts By

© Reuters.

By Geoffrey Smith — U.S. stock markets opened the week mixed on Monday, as concerns about the global spread of the Covid-19 virus encouraged further rotation out of value stocks and back into the ‘growth-oriented’ stocks that benefited so much from the pandemic last year. Even so, they remained close to record highs.

By 9:35 AM ET (1335 GMT). the was down 113 points, or 0.3%, at 34,757 points, while the , which had finished last week at a record high, was down 0.1%. The , which likewise closed at a record high on Friday, extended that streak with a 0.3% gain. 

The U.S. recorded its highest number of new Covid-19 cases in over two months at the weekend, prompting fears that the highly-transmissible delta strain of the virus may yet derail economic reopening, especially in those state with low vaccination rates. The U.S. vaccination rate has tailed off sharply since April and is currently running at one-tenth of its peak rate, despite the fact that less than half of the adult population is fully vaccinated.

For many, though, that’s still only a cloud on the horizon that may or may not blow their way. The gradual return to normal life was illustrated at the weekend by Disney’s new blockbuster Black Widow raking in $218 million at the box office, including over $150 million from reopened movie theaters. Analysts were more impressed by the $60 million it made through the Disney+ streaming channel, where it earns higher margins. Disney stock outperformed with a 0.9% gain.

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