Stocks posted steep declines on Monday as investors grew concerned that the U.S. economic rebound may have already peaked and rising COVID cases may further slow global economic growth. The Dow Jones fell over 700 points, marking its worst day since last October as traders pulled money out of the broader market.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Last year's recession is now the shortest on record:
The COVID-19 recession is now the deepest, but also shortest, in U.S. history, according to the National Bureau of Economic Research (NBER). Officials found that the contraction lasted just two months, from February 2020 to the following April.
While the nation's GDP plunged 31.4% during that two month span in the second quarter, it also epically rebounded the next period, rising 33.4% on the back of unprecedented fiscal stimulus.
"In determining that a trough occurred in April 2020, the committee did not conclude that the economy has returned to operating at normal capacity," the NBER said in a press release. "The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession associated with the February 2020 peak. The basis for this decision was the length and strength of the recovery to date."
Homebuilder confidence falls to lowest level in nearly a year:
U.S. homebuilder confidence for the single family home market declined in July to its lowest level since August 2020 as higher construction costs begin to outweigh strong demand.
The National Association of Home Builders monthly sentiment index fell by 1 point to 80 in July from 81 in June. The index stood at 72 in July 2020, with reading above 50 considered positive. The index reached an all-time high of 90 back in November 2020.
Robinhood now seeks $35 billion market valuation:
Popular retail investing app Robinhood is now seeking a market valuation of as much as $35 billion in its highly anticipated upcoming initial public offering, according to an amended U.S. Securities and Exchange Commission filing released Monday.
The company plans to sell 55 million shares in the range of $38 to $42 per share, setting the stock to raise as much as $2.3 billion in its Nasdaq debut under the ticker "HOOD."
Additionally, Robinhood now estimates that it has 22.5 million funded accounts on its stock trading platform as of the second quarter, up from 18 million in the first quarter of 2021.
Here's how the market opened to start the week:
S&P 500 Index: -1.17% or -50.52 points to 4,276.64
Dow Jones Industrial Average: -1.29% or -448.89 points to 34,238.96
Nasdaq Composite Index: -1.33% or -191.74 points to 14,235.50
