Georgia vote, virus surge spark Wall St. slump

Wall Street greeted the first trading day of the new year with the biggest sell-off in two months for the Dow and S&P 500 after both briefly touched new record highs.

Investors seemed to be spooked ahead of Tuesday's run-off elections in Georgia, which will determine control of the U.S. Senate and could determine what President-elect Joe Biden can get done during his term.

The Dow fell 382 points. The S&P 500 lost 55. The Nasdaq gave up 189.

Tim Bray, senior portfolio manager at, GuideStone Capital Management doesn’t see Monday’s pullback as a harbinger of things to come.

"The market likes certainty, and this is creating a lot of uncertainty as it goes forward. We think near term, though, once those elections are settled out, the market's going to continue to head higher on additional fiscal stimulus that will come if the Democrats do sweep the Senate. And if they don't, we think the markets will head higher on the status quo. So either way, the markets are poised to to continue to go higher."

But Wall Street still has to grapple with a health crisis that does not appear to be slowing down despite several approved vaccines.

British PM Boris Johnson on Monday announced another national lockdown, which investors fear will likely dampen the global economy.

Travel and tourism stocks were among the biggest losers of the day. The group - also taking a hit now that the peak holiday travel season is over. Norwegian Cruise Lines sank nearly 7 percent. Hotel operator Marriott was down more than 5 percent and American Airlines fell 4 percent.

But on the upside...Tesla. The electric car company continued its record run to fresh all-time highs. Investors cheered Tesla's better-than-expected vehicle delivery numbers for 2020.