Delta Variant Fears Hit Wall Street 

The Dow plummeted nearly 800 points after 11 a.m., a 2.2 percent drop. The S&P 500 fell 1.5 percent and by 10:47 a.m., the Nasdaq sunk 1.31, according to Reuters and the Associated Press.

Economy-linked value and travel stocks are struggling following the increase in global COVID-19 cases. The overall situation has brought up new worries about the slowdown in economic growth.

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Simon Property Group, the owner of shopping malls across the country, declined 4.9 percent, and cruise operator Carnival lost 4.3 percent, according to the AP.

The rate of new infections due to the Delta variant has been escalating in parts of Asia and England. In the U.S., new cases accelerated 70 percent last week.

“The global economy is barely surviving on life support and another wave of infections may spur lockdowns that could signal the death knell for the tenuous recovery,” Peter Essele, head of investment management for Commonwealth Financial Network, told Reuters.

Economists are expecting a slowdown in the economy once stimulus funds dry up, but anticipate steady growth for the next year as people start spending their stimulus savings. After that, the economy is expected to slow to a pre-pandemic rate.

Economists surveyed by The Wall Street Journal said they anticipated that the economy expanded about 9.1 percent from April to June, the second-fasted expansion since 1983. Several economists have said that the U.S. GDP was stronger than it was in the second quarter before the pandemic hit.

Morgan Stanley’s chief U.S. economist Ellen Zentner said earlier that the economy is “past the peak for growth” and is now moving into a “more moderate phase of expansion.”