Stock market drops as delta variant fuels economic fear

The Dow Jones Industrial Average fell as COVID-19 cases continue to spread, creating financial panic.
4:24 | 07/19/21

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Transcript for Stock market drops as delta variant fuels economic fear
And Hillary what I'm. Here Phillips you're watching ABC news lives we are just moments away from the closing bell on Wall Street we are coming on the air because the stock market. Is seeing some pretty steep losses today losing keeping our eye on the Dow you can see in negative territory right now in March part. Because of concerns that a rebound in coping cases will slow global economic growth. Also seeing sharp losses today the NASDAQ the SP 500 and the price of crude oil which. Fell more than 6%. As we are watching the floors were joined. By Alexis for stopper is anchor at Yahoo! finance Alexis we are waiting about fifteen seconds away possibly from the closing. Bell there there it is. Thing at a negative seven. Forty Irene. We'll. We'll see the numbers flat here in freezing just the second so what do you make of the sell off today Alexis. I'll certainly ugly way to start the week right here and believe it or not this isn't even the worst event because of the worst of it the Dow was down. Nearly a thousand points today its biggest one day drop since October but I think we think about the sell off this aggressive sell off with these scary numbers it's important to think about how far we've come. Just put it in perspective it was just last week that the Dow crossed the 35000. Mark for the first time ever. This stock market has been incredibly resilience and throughout the pandemic we've had record highs day after day. For the S&P 500 and for the NASDAQ so these these valuations for a lot of stocks right now are very rich and sometimes all investors are looking for. Our resent Zhu Zhu unload some of these stocks and to lock in those profits and the rise and Kobe cases could indeed. Beat our Reeves a legitimate concern of course the fact that the delta variant is now more widespread in this country. We're seeing higher open nineteen cases not only here but throughout the world so today we saw was. A lot of those stocks related chew the economy reopening got hit the hardest. By that I mean the travel stocks airlines cruise lines a lot of the big hotel chains all too big big losses as they fear they are is that if the virus is going to have another wave we're gonna have to pull back on the economic recovery might stall a little bit. We also saw oil. Really pull back out crude oil down 7%. Secure it's now in what we call correction territory which means it has fallen 10%. From its recent peak. Our reached just last week. And the concern here is. You know we're gonna need as much oil look people are not gonna travel as much take to the skies are taking their cars because of the rising cases case of Kobe that perhaps sell oil will start to pull back so again today. Seems like the big excuse was a rising Kobe cases though of course that is a legitimate concern for the health of the economic recovery. Well let's talk about at the selling continues where's it getting hit is the hardest what should we be paying attention to and get ready for. Well I think that in terms of how. The stock market relates to the economic recovery want to look out for those sensitive stocks like. Energy like travel related stocks like restaurant related stocks that could indeed. Pull back now remember part of this equation is also rising inflation we are rising prices which could also pinch consumers and also maybe put this economic recovery on paused. And a leading with this bit of good news here and that is every market analysts I talk to today said that they don't see today's sell off as the beginning of a long term widespread sell off. They think it was an overreaction to the rising Toby cases and they all saw today's big sell off as a huge buying opportunity. A cable there you go that's what I was wondering what should we have purchased today missing if I can only go back a couple hours but that's good news Alexis. Thanks so much Alexis Crist offers forest where it have a complete wrap up tonight 7 PM eastern on ABC news live prime with Lindsey Davis. Face for joining us I'm cure Phillips and have a great afternoon.

This transcript has been automatically generated and may not be 100% accurate.

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