After a dizzying rally this year, stock markets were hit hard on Monday as a spike in COVID-19 infections around the world reinforced the reality of living with a pandemic that refuses to go away.
The Dow Jones Industrial Average, tumbled 725 points, or 2.1%, and had its worst day since October, while the S&P500 fell 1.6%.
The losses mark a rare day of declines for a market that was at record highs as early as last week.
Here are three key things to know about the market’s fall.
In a word, COVID-19. Though the rollout of vaccines has allowed some semblance of normality to return in the U.S., countries such as Indonesia continue to see surging infections, especially from those tied to the most recent Delta variant.