Stocks saw a big gain from earlier in the day this Monday and closed down on Monday afternoon as Wall Street’s recent events of volatility continued.
Having added more than 200 points earlier in the session, the Dow came down by 245 points, or 1 percent and closed at 24,442. The S&P 500 index and Nasdaq also lagged a little low, with technology and communications companies have faced some of the biggest losses.
Stocks have taken a beating since early October, and trading has been especially volatile in the last few days. The S&P 500 came down by 9 percent this month, recorded to be its worst monthly loss since February 2009, back when the market bottomed during the financial crisis.
However, the shares of Red Hat, an open-source software company, went up by 45 percent to $169.56 after IBM announced a deal to buy Red Hat for $34 billion. IBM said this purchase is the biggest deal the company has ever made. The executives believe that the deal will help the company take the next step in cloud computing. Ginni Rometty, Chairman and CEO of IBM said that the deal will make IBM the world’s biggest hybrid cloud provider, offering a lot of companies a mix of on-site, private as well as third-party public cloud services. Although, IBM’s stock fell by 4.8 percent to $118.77.
Earlier on Monday, stocks in Europe rose sharply higher. Italy’s main stock index lined up after Standard & Poor’s did not affect the country’s credit rating. German stocks went up even after longtime German Chancellor, Angela Merkel, who has been at her position for 18 years, stated that she won’t run for another term in 2021. The Bovespa in Brazil also rose after far-right politician Jair Bolsonaro’s election as the president.
Though the bond prices fell, it did not affect the yield on the 10-year Treasury note, which rose to 3.10 percent from 3.07 percent.