UPDATED, 4:15 p.m. ET: U.S. stocks recovered Monday after initially falling as Wall Street reacted to the prospect that a second wave of COVID-19 outbreaks could hinder a global economic recovery.
After a day of choppy trading, the Dow Jones Industrial Average ended up around 0.62%, to 25,763.16 (gaining 157.62 points) and the S&P 500 closed up 0.83%. The Nasdaq Composite rose 1.43% Monday. That came after the Dow dropped more than 2.7% shortly after the opening bell, while the S&P 500 fell 2.3%.
The stock swings came after a dozen U.S. states (including Arizona, Arkansas, Florida and Texas) reported increases coronavirus infections over the past week. Chinese authorities locked down parts of Beijing after an eruption of new COVID-19 cases over the weekend. Among the hardest-hit sectors were travel, retail and energy, as oil futures dropped 3.7%.
At the start of trading Monday, many media and tech stocks were pulled down in the eddy of negative sentiment spreading on Wall Street. Companies whose shares were down more than 2% in early trading included Disney, AT&T, Lionsgate, AMC Networks, and Discovery.
All of those stocks closed up on the day — with the exception of Lionsgate, which fell 4.1%.
ViacomCBS stock jumped 8.7%, AMC Networks was up 5.2% and Discovery was up 3.1% — after all three stocks suffered double-digit declines last week. After opening down, Fox Corp. stock rose 3.5% and Disney closed up 1.4% on Monday. AT&T ended the day flat, at $30.50 per share.
Big tech stocks — Apple, Alphabet, Amazon and Facebook — slipped 0.5%-1.5% early but all recovered to post small gains for the day (Apple +1.24%, Amazon +1.09%, Facebook +1.71% and Alphabet +0.47%). Also gaining were Twitter (up 2.1%) and Snap (2.8%).
Netflix shares opened up 0.7%, oscillated between positive and negative territory, before rising in the afternoon to close up 1.8%.
Comcast shares were down 1.6% in early trading before rising in the afternoon rally to close at $39.83 per share (up 0.9%). On Saturday, Donald Trump urged consumers to cancel Comcast service because he’s upset over news coverage. “Concast is known for its terrible service,” Trump said on Twitter. On top of that they provide FAKE NEWS on MSDNC & @NBCNews. Drop them and go to a good provider!”