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October 26, 2020

Stocks tumble as Covid-19 cases surge and stimulus is nowhere to be found

US stocks tumbled at Monday's opening bell, as coronavirus, Washington intransigence and earnings are weighing on the market.

The election is only eight days away, there's still no new stimulus package and the first look at how the economy fared in the third quarter will be reported on Thursday. Big Tech companies will report earnings this week as well, including Microsoft, Apple, Google, Facebook and Twitter.

While earnings will inject volatility in the tech sector, "on a more macro level, ongoing US stalemate over US fiscal stimulus and the rapidly spreading Covid-19 is going to determine the direction for the wider markets," said Fawad Razaqzada, market analyst at Think Markets, in a note.

On top of that, Covid-19 infections are rising rapidly across Europe, where governments have brought back restrictions to stave off the spreading once again.

All this is making for an uncertainty cocktail that the market doesn't like one bit.

The Dow opened 1.1%, or just below 300 points, lower, while the S&P 500 -- the broadest measure of the US stock market -- fell 0.9%. The tech-heavy Nasdaq Composite fell 0.8%.

European markets were also in the red across the board.

Stocks tumble as Covid-19 cases surge and stimulus is nowhere to be found.

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