Stocks on Monday dropped, reflecting investors' move into safe-haven assets as they weighed how rising COVID-19 cases might affect the economic recovery in the U.S. and globally.
Equities extended declines from Friday. Stocks had finished lower after surging inflation led to an unexpected decline in U.S. consumer sentiment in early July. For the week, the Dow fell 0.5%, the S&P 500 declined 1% and the Nasdaq dropped 1.9%.
Monday Drop: 'You Have to Start Buying Here'
Stocks sold off on Monday. TheStreet's Jim Cramer has some ideas about what is driving the move lower and what to do about it.
"You have to start buying here simply because you don't know when the bottom's going to be," Cramer said from the floor of the New York Stock Exchange.
"It's a huge selloff based on the idea that a bunch of athletes got it, the breakthrough is what people are worried about, the Johnson & Johnson -- people are worried about -- and the Olympics."
The Delta variant of COVID-19 has been spreading rapidly in parts of Asia, including Japan, where the Olympics will begin Friday, and in the U.S.
Jim Cramer's Oil Stocks to Buy
Oil stocks were hammered Monday. Oil prices declined after OPEC+ reached a deal to release an extra 400,000 barrels a day until its previous output decline of 5.8 million barrels is entirely restored.
That's estimated to happen in September 2022.
"Pioneer (PXD) - Get Report is at 130. You might have to buy it," Cramer said. "Chevron (CVX) - Get Report, with more than 5% yield, I think that's a buy." He said Monday's selloff made it too late to sell some high-quality energy names.