Stocks decline as virus risk rises; oil gains

The S&P 500 fell 0.6% in volatile trading, led by declines in utilities, energy ad industrial shares. On the week, the benchmark index closed up 1.9%. Stocks had rallied amid reports that China plans to accelerate purchases of American farm goods to comply with the phase one U.S. trade deal, only to have the gained erased after data show record levels of Covid 19 in Florida and Arizona. Investors were whipsawed by bouts of volatility as a welter of options expired in a quarterly event know as quadruple witching.

"That's a worrisome sign for markets,"said Matt Forester, chief investment officer of BNY Mellon's Lockwood Advisors. "This is a continuation of the first wave, this is not a second wave."

In Europe, investors focused on negotiations over the EU's proposed 750 billion-euro ($840 billion) program to help economies rebound from lockdowns, which helped send the Stoxx 600 Index up about 0.6%.

Investors have been betting that governments will be able to put their economies back on track with enough stimulus at their disposal. U.S. and European benchmarks clawed back a portion of last week's losses that were spurred by concern over a second wave of coronavirus infections.

Elsewhere, crude oil settled at the higher level in a week after briefly advancing beyond $40 a barrel.

These are some of the main moves in markets:

Stocks

The S&P 500 Index fell 0.6% to 3,097.74 as of 4:15 p.m. EDT, the largest fall in more than a week.

The Dow Jones industrial average fell 0.8% to 25,871.46, the biggest fall in more than a week.

The Nasdaq Composite Index was little changed at 9,946.13, hitting the highest in more than a week with its sixth consecutive advance.

Currencies

The Bloomberg Dollar Spot Index was little changed at 1,220.40, the highest in three weeks.

The euro decreased 0.2% to $1.118, the weakest in more than two weeks.

The Japanese yen appreciated 0.1% to 106.86 per dollar, reaching the strongest in six weeks on its fifth straight advance.

Bonds

The yield on 10-year Treasurys decreased two basis points to 0.69%, the lowest in more than a week.

Germany's 10-year yield declined one basis point to -0.42%.

Britain's 10-year yield rose one basis point to 0.238%, the highest in more than a week.

Commodities

West Texas Intermediate crude climbed 1.9% to $39.57 a barrel, the highest in more than a week.

Gold strengthened 1.2% to $1,742.91 an ounce, the highest in a month on the largest increase in more than a week.