Rising Covid-19 infections all over the world because the colder seasons of the 12 months start in some areas are additionally weighing available on the market. Traders are rising more and more involved about renewed lockdowns whereas the financial restoration from the pandemic stays fragile.The Dow (INDU) completed down 1.8%, or 510 factors, marking its worst day in about two weeks. The broader S&P 500 (SPX) closed 1.2% decrease. Each the Dow and the S&P are flirting with falling into correction territory, which is outlined as a 10% drop from the height.The Nasdaq Composite (COMP), the one index of the three that presently is in correction territory, ended solely modestly decrease, down 0.1%. European stock markets additionally traded decrease Monday.Whereas stocks are getting hammered the safe-haven US greenback, measured by the ICE US Greenback Index, was up 0.7% on the New York closing bell. US Treasury bonds, additionally a security funding, are additionally in excessive demand Monday because the 10-year bond yield dipped to 0.67%. Bond costs and yields transfer reverse to at least one one other.Nonetheless, there are causes for buyers to be bullish on US stocks proper now. For one, the Federal Reserve has dedicated to maintaining rates of interest decrease for longer, which is nice for firms seeking to borrow cash. Many strategists additionally imagine that Wall Street stays essentially the most engaging stock market to spend money on. So every thing can be effective, proper? Not so quick: There are many clouds on the horizon.The gridlock in Washington has buyers frightened about when Congress will agree on the subsequent — and far wanted — stimulus invoice to spice up the economic system. Thus far the negotiations have not led to a lot, and tensions are rising with the presidential election simply six weeks away.”Sentiment within the US can also be worse following Friday night’s demise of Supreme Court docket Affiliate Justice Ruth Bader Ginsburg,” wrote Macquarie international rates of interest and currencies strategist Thierry Wizman in a observe to purchasers.Washington is now arguing about whether or not a decide to fill Ginsburg’s seat must be voted on earlier than the election or after. Within the latter case the stakes within the presidential election turn into even larger and will make it extra possible that the consequence can be contested, Wizman stated.However the market has been jittery for weeks, beginning with a pointy selloff primarily in tech stocks that was a impolite awakening after the summer time market rally.Market specialists have warned that volatility can be excessive towards the tip of the 12 months and across the election, particularly as a result of many anticipate the winner will not be recognized instantly.