Dow takes worst hit of 2021, falls by more than 700 points

Dow takes worst hit of 2021, , falls by more than 700 points.The 2.7 percent drop that shook the Dow on July 19 is thought to represent investor reaction ... .... to news that the Delta variant has led to spikes of COVID-19 cases all over the U.S. .It was the most significant drop since Oct. of last year, when stocks fell 943 points.Shares of cruise and airline companies took the deepest hit as fears of a slower economic recovery spread.More concerning for analysts than a drop in stocks are possibilities of stagflations, .which is when economic growth slows in tandem with rising inflation.Fear of stagflation will be a major concern for investors if a resurgence in Covid infections causes economies to slow while consumer prices continue an upward trajectory, Peter Essele, Commonwealth Financial Network, via CNN.Investors recognize that stocks remain close to record highs, up nearly 10 percent this year overall.We do not expect a return to complete shut downs in the US so while the damage from the Delta variant can be significant, we are still in the 'buy the dip' camp, Bryce Doty, Sit Fixed Income Associates, via CNN