Index Falls 3% as Economic Concerns Intensify

U.S. equities tumbled Monday to start the first full week of August, as last week’s soft jobs print and worries about the U.S. economy weighed on markets.

All three of the major U.S. equities indexes posted significant losses on the day. The Dow fell 2.6%, while the S&P 500 dropped 3%, and underperformance in tech drove the tech-heavy Nasdaq down 3.4%.

Shares of casino operator Caesars Entertainment (CZR) dropped 6.9%, suffering the heaviest losses of any S&P 500 stock. Although the company reported strength in its Las Vegas segment when it reported results last week, its regional operations face tough competition, and its revenue for the second quarter fell short of expectations. Caesars also announced late last week that it would sell the World Series of Poker brand to Canada-based online gaming group NSUS.

Walgreens Boots Alliance (WBA) shares fell 6.6%. While pressure on the pharmacy giant may be related to the uncertain economic outlook, the company also announced late last week that it would sell $1.1 billion of its stake in drug distributor Cencora. Walgreens said it will use the proceeds from the sale to fund its operations and pay down debt. The firm has struggled with slumping consumer demand and high operating costs, discussing plans to shutter underperforming stores when it reported quarterly results in June.

Shares of Etsy (ETSY) declined 6.6% after analysts at B. Riley cut their current-quarter earnings forecast for the online crafts marketplace. Although Etsy topped sales expectations when it reported second-quarter results last week, profits fell short of estimates, and the firm’s below-consensus guidance for its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin raised questions about its growth trajectory.

Intel (INTC) shares lost 6.4% on Monday, extending losses late last week after the semiconductor giant posted weaker-than-expected quarterly results and announced layoffs as it aims to cut costs. In notes to investors following the earnings release, analysts questioned whether the cost-reduction plans will be enough for Intel to regain its competitive mojo.

Shares of Kellanova (K), maker of Eggo Waffles, Cheez-It, and other packaged food brands, soared 16.2%, notching Monday’s top performance in the S&P 500. The leap higher for the stock followed reports that candymaker Mars is in advanced talks to purchase Kellanova. According to The Wall Street Journal, a possible deal would value the snack-focused firm, which completed its spinoff from cereal giant WK Kellogg (KLG) last year, at around $30 billion.

Tyson Foods (TSN) shares added 2.1% after the meat producer reported better-than-expected sales and adjusted profits for its fiscal third quarter. Although plant closures and legal costs pressured the results, the company touted its strong free cash flow generation and gains in adjusted operating income. Tyson also saw a boost from increased sales in beef, pork, and prepared foods, although chicken sales ticked downward.

Shares of CrowdStrike Holdings (CRWD) gained 1.9% as the cybersecurity firm rebuffed claims from Delta Air Lines (DAL) that CrowdStrike should be held liable for flight disruptions following last month’s global tech outage. Delta said last week that it planned to seek financial compensation from CrowdStrike to recover losses suffered as a result of the incident.