Stocks finished sharply lower Monday as bank shares tumbled following a report on suspicious transactions and as investors worried a global recovery could be hampered by a rise in coronavirus infections and dimming prospects for another U.S. fiscal stimulus bill.
Bank shares reeled Monday following a report that said JPMorgan Chase (JPM) - Get Report, Deutsche Bank (DB) - Get Report and other financial services companies had defied money laundering crackdowns even after being fined by U.S. authorities.
The report by the International Consortium of Investigative Journalists found five global banks moved "staggering sums of illicit cash for shadowy characters and criminal networks that have spread chaos and undermined democracy around the world."
The Dow Jones Industrial Average finished down 509 points, or 1.84%, to 27,147, the S&P 500 dropped 1.16% and the Nasdaq eased 0.13%.
The S&P 500 declined for a fourth consecutive session. Stocks have fallen the first three weeks of September.
"Investors should take a binary approach to the market at this point. Remain bullish but raise some cash as technology stocks bounce in the near term," said Marc Chaikin, founder of Chaikin Analytics. "Look for opportunities to redeploy that cash as this short-term pullback plays out over the next two to four weeks."
Global coronavirus infections have surpassed 31.2 million, with U.S. cases accounting for 6.829 million of the total. Deaths in the U.S., according to Johns Hopkins University, were just under 200,000.
In the U.K., coronavirus cases have seen a significant increase. The government reported Sunday new infections of 4,422, the biggest daily rise since early May. An official estimate showed new cases and hospital admissions have been doubling every week, the Associated Press reported.
In the U.S., little progress has been made on a new coronavirus stimulus package as Republicans and Democrats remain in a stalemate.
The negotiations could become even more complicated following the death of Supreme Court Justice Ruth Bader Ginsburg, as lawmakers prepare for what could be a historic nomination fight ahead of November's presidential election.
President Donald Trump said he would nominate a woman this week as a successor to Ginsburg.
Nikola (NKLA) - Get Report shares fell 19% to $27.56 after Founder Trevor Milton stepped down as executive chairman. The move followed reports last week that the Securities and Exchange Commission was probing the electric-vehicle startup for allegations of fraud levied by short-seller Hindenburg Research.
Milton, who founded Nikola in 2014, was succeeded by board member Stephen Girsky, who was appointed chairman.