Media, Tech Stocks Slide as Investors Fear COVID Resurgence

Financial markets took a hit Monday amid fears that the Delta variant of the COVID-19 virus would delay reopening plans and put a damper on economic recovery.

The Dow Jones Industrial Average index closed down 2.1%, off 724.56 points to 33,963.29 — the biggest one-day drop for the Dow since last October. The S&P 500 also fell, declining 1.6% for the day, while the tech-focused Nasdaq slipped 1.06%.

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Big media companies were pulled down in the selloff, led by Lionsgate (-4.75%) and Disney (-3.6%), the latter likely on worries that the Mouse House’s theme parks would be hurt by new restrictions put in place because of rising coronavirus cases. Other entertainment and telecom stocks also dropped, including AT&T (-1.9%), Discovery (-1.3%), Comcast (-1.6%) and ViacomCBS (-1%).

Apple (-2.96%), Amazon (-1.04%), Facebook (-1.46%) and Google parent company Alphabet (-2.13%).

Netflix, meanwhile, was less hard-hit than other media and tech stocks — in fact, it was one of the day’s few gainers, closing up 0.37%. The streaming giant is scheduled to report Q2 2021 earnings after market close on Tuesday, July 20.

The market drop was led by falling oil prices, as U.S. crude futures dropped 7.5% Monday, which drove down energy and travel company stocks.

Earlier Monday, Dish Network (which closed -1.04%) announced a 10-year deal with AT&T to replace T-Mobile as its primary network provider for wireless service under Boost Mobile and other brands. Under the deal, Dish will pay AT&T at least $5 billion over the 10-year period.

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