Stock market live Monday: Dow tanks 500 points, rough September, Nikola plunges 19%

This is CNBC's markets live blog that will be updated throughout the day. 

Wall Street's September sell-off intensified on Monday amid worries about the worsening pandemic. The declines added to the major averages' three straight losing weeks. Bank stocks came under pressure after a report found global banks moved allegedly illicit funds. Once red-hot Nikola plunged with founder Trevor Milton voluntarily stepping down. Technology stocks had a late day comeback. Here's what's happened. 

Monday's sell-off by the numbers

  • Dow closed down 1.84% for its third straight negative day and its worst day since Sept. 8
  • This year, the Dow is down 4.87%
  • S&P closed down 1.16% for its fourth straight negative day for the first time since Feb. 28 and its 7-day losing streak as well as its worst day since Sept. 10
  • This year, the S&P is up 1.56%
  • Nasdaq closed down 0.13% for its fourth straight negative day for the first time since Feb. 25
  • This year, the Nasdaq is up 20.13%
  • Declining stocks outpaced advancing stocks 2,625 to 442 or almost 6 to 1 on the NYSE 
  • Declining stocks outpaced advancing stocks 2,831 to 670 or more than 4 to 1 on the NASDAQ— Maggie Fitzgerald 

Stocks close with sharp declines, Dow down 500 points

The major averages sold off across the board on Monday with the Dow Jones Industrial Average plunging 510 points. The S&P 500 and Nasdaq Composite lost 1.16% and 0.13%, respectively. Stocks, however, closed above their session lows thanks to a late day comeback in technology stocks. — Maggie Fitzgerald 

Roku jumps to new all-time high

Shares of Roku jumped more than 17% on Monday, lifting the stock to a new all-time intraday high after the company reached a deal with Comcast's NBCUniversal over streaming service Peacock.

"Two primary benefits to Roku include top-end premium inventory and subsequent pricing leverage on its CTV premium ad bundles, and leverage with other major media networks/carriage agreements including present discussions with AT&T/WarnerMedia for HBO Max premium and ad-supported subscription carriage/revenue share," Rosenblatt Securities analyst Mark Zgutowicz said in a note Monday. The firm reiterated its buy rating on the stock.

NBCUniversal is CNBC's parent company. - Pippa Stevens, Jessica Bursztynsky 

Some technology stocks come back as closing bell approaches

Shares of some of the technology stocks that were dragging on Monday had a late day comeback. Shares of Netflix rose 2.5% and shares of Apple rose more than 1%. Chip stock Nvidia and Tesla also were in the green.  The Dow Jones Industrial Average was still down nearly 700 points with less than an hour of trading. — Maggie Fitzgerald 

Final hour of trading: Stocks sell off to start the week

The major averages were sharply lower with roughly one hour left in the trading session as concerns over a new wave of coronavirus cases and U.S. stimulus uncertainty dented sentiment. The Dow dropped more than 800 points, or 3.1%. The S&P 500 slid 2.6% and the Nasdaq fell 1.8%. —Fred Imbert

Musk tells employees Tesla has 'shot' at record quarter

Tesla CEO Elon Musk sent an email to employees ahead of quarter end to encourage them to set a new record for deliveries. Musk typically sends a similar memo near the end of every quarter. 

"We have a shot at a record quarter for vehicle deliveries, but will have to rally hard to achieve it. This is the most [sic] number of vehicles per day that we've ever had to deliver," the memo said.

Tesla's shareholder meeting and battery day is set for Tuesday, and its shares have outperformed the broader market on Monday with only a slight dip. Read the full email here. — Jesse Pound, Lora Kolodny

Government debut surged in Q2, while stock market boosted household wealth

Household net worth rose in the second quarter while government debt blew up amid efforts to stave off the coronavirus pandemic. The Federal Reserve reported Monday that the federal government's IOU surged 59% from April through June, thanks to the CARES Act aimed at supporting workers and businesses through the economic shutdown and gradual restart. Businesses continued to borrow heavily, with corporate debt up 14% after increasing 18.4% in the first three months of the year. The household balance sheet increased to $119 trillion, a nearly 7% gain, three-quarters of which came due to rising stock market values and financial wealth. Consumer credit declined by the fastest pace on record. — Jeff Cox

Fastly, most impacted name by TikTok ban, rebounds 9%

American cloud computing services provider Fastly surged 9% on Monday after President Donald Trump said he approved a deal in which Oracle and Walmart will partner with the viral video-sharing app TikTok, allowing the popular app to avoid a shutdown in the U.S. Fastly has generated 12% revenue from TikTok this year with the Chinese app being its single largest customer, according to Wall Street firm Piper Sandler, previously calling the company "most negatively impacted" by the U.S. ban. The stock has soared more than 350% this year with the explosive growth of TikTik in the U.S. — Yun Li

Oil prices slip on growing demand worries

Oil moved lower on Monday as a rising number of Covid-19 cases stoked fear in the market that oil demand will continue to remain depressed. West Texas Intermediate crude, the U.S. oil benchmark, slid 4.5%, or $1.84, to $39.26 per barrel. Earlier in the session WTI touched a low of $38.87. Meanwhile, international benchmark Brent crude slipped 4.13%, or $1.78, to $41.37 per barrel. 

"On the demand side, worries of renewed mobility and distancing restrictions in populous places such as London ... puts a damper on demand expectations," said Bjornar Tonhaugen, head of oil markets at Rystad Energy. "On the supply side, the market is digesting whether the positive news from Libya's NOC [national oil corporation] this weekend will lead to higher crude exports from the country soon, as NOC lifted its Force Majeure on Saturday, albeit only from 'secure facilities,'" he added. - Pippa Stevens

Nikola board changed its mind on Milton in recent days, sources say

The members of Nikola's board changed their mind on Trevor Milton's continued role and accepted his resignation, sources told CNBC's David Faber. The board had told Milton he did not need to resign when he originally offered to do so about 10 days ago, sources said. The company's stock dropped 20% in morning trading. — Jesse Pound

Decliners outpacing advancers 11-1

About 11 stocks declined on Monday for every advancer at the New York Stock Exchange as the September sell-off picked up steam. Overall, about 2,700 NYSE-listed names were down and 235 stocks traded higher. —Fred Imbert

S&P 500 briefly goes negative for the year

Monday's slide briefly brought the S&P 500 below the level where it ended 2019. The index closed at 3230.78 on Dec. 31 and hit a low of 3,229.10 during early trading. In June, the index pushed back into positive territory for the year after the pandemic-induced selloff. — Jesse Pound

Bank of America raises price target on Penn National to $85 from $59.75

Bank of America raised its price target on Penn National to $85 from $59.75 on Monday morning tying a Street high. The firm said it was bullish on the company's partnership with Barstool as well as the launch of the Barstool Sports App. "Our initial impressions are positive given the app's 1) ease of use and 2) leverage of the Barstool brand to create a unique interactive experience," analyst Shaun Kelley said. "While the stock has had an amazing run, we still like PENN given its attractive exposure to sports betting/iGaming and an improving core business," he added. The firm also reiterated its buy rating on the company. Shares of the company company are up 37% this month. - Michael Bloom

Snowflake's first Wall Street rating is a sell

Summit Insights Group was the first Wall Street shop to initiate coverage on Snowflake, giving the stock a sell rating and a price target that showed downside of more than 25%. In a note to clients, the firm praised the company itself but warned of a "violent sell-off" for the stock. Shares of Snowflake dropped 4% in early trading. — Jesse Pound

'I'm kind of tempted to take the other side of the trade'

CNBC's Jim Cramer advised investors to look for places to possibly buy in Monday's sharp stock market sell-off. "We're down on something that nobody really understands," said the "Mad Money" host, playing down the worries about another coronavirus lockdown in Europe. He said that from what he sees, the U.S. is not heading in that direction. "I'm kind of tempted to take the other side of the trade, looking for opportunities. It's not like we just discovered the downside," Cramer said on CNBC, noting the market has dropped for three weeks straight and many of the biggest American tech companies have seen their shares pull back double-digit percentage points this month.

Sell-off intensifies, adding to 3-week losing streak

The intense selling pressure on Monday deepened Wall Street's tech-led slump over the past few weeks. The S&P 500 and the Dow just suffered their first three-week losing streak since October 2019, while the tech-heavy Nasdaq posted its fourth straight negative week. The major averages are on pace for steep losses for September, a typical weak month for stocks. The Dow and the S&P 500 have lost 4.9% and 6.8% this month, respectively, while the Nasdaq has fallen 9.5% as investors dumped high-flying tech gaints.— Yun Li

Here are Monday’s biggest analyst calls of the day: Apple, Oracle, Snowflake, Boeing & more

  • Stifel upgraded Lam Research to buy from hold.
  • Piper Sandler upgraded Dunkin' Brands to overweight from neutral.
  • Summit Insights initiated Snowflake as sell.
  • Deutsche Bank added a catalyst call buy idea on Western Digital.
  • Goldman Sachs added Raytheon and Boeing to the conviction buy list.
  • Morgan Stanley upgraded Capri Holdings to overweight from equal weight.
  • RBC upgraded Oracle to outperform from sector perform.
  • Credit Suisse upgraded UPS to outperform from neutral.
  • Piper Sandler upgraded Tapestry to overweight from neutral.
  • Citi raised its price target on Apple to $125 from $112.50.

Pro Subscribers can read more here- Michael Bloom

Stocks sell-off at the open, Dow down 450 points

The major averages started with sharp declines on Monday as investors weighed an uptick in Covid-19 cases, stalemate on a second stimulus bill and weakness in the technology sector. The Dow Jones Industrial Average fell 485 points. The S&P 500 and Nasdaq Composite dropped 1.55% and 1.6%, respectively. — Maggie Fitzgerald 

Credit Suisse upgrades UPS

Credit Suisse upgraded UPS to outperform from neutral and said in a note to clients that the stock was poised for a 20% climb. This marks the first time the firm has been positive on the parcel carrier stock in five years and comes after the pandemic accelerated the shift to e-commerce and the need for more deliveries.

CNBC Pro subscribers can read more about the call here. — Jesse Pound

General Motors comments on Nikola founder's departure

General Motors issued the following comment Monday morning on the announced departure of Nikola founder and Executive Chairman Trevor Milton. GM announced earlier this month that it's taking an 11% stake in the electric truck maker worth about $2 billion.

"We acknowledge Trevor Milton's departure from Nikola and the decision of the Nikola Board to move forward. We will work with Nikola to close the transaction we announced nearly two weeks ago to seize the growth opportunities in broader markets with our Hydrotec fuel cell and Ultium battery systems, and to engineer and build the Nikola Badger. Nikola, Honda and other companies who are looking to GM's technology as a platform for their products, represent just one part of our overall EV strategy. Our overall goal is to put everyone in an EV and accelerate adoption."  Shares of GM were off by 3.5% in premarket trading on Monday. — Thomas Franck

China releases 'unreliable entity list' a day after U.S.' TikTok ban

China's Ministry of Commerce released long-awaited provisions on its so-called "unreliable entity list" over the weekend. The vaguely worded document mirrors the U.S. Commerce Department's entity list that restricts named companies from accessing items originating in the U.S. The move came a day after the U.S. Commerce Department announced a ban on U.S. transactions using WeChat and TikTok. A U.S. judge in California halted the Trump administration's ban on downloads of WeChat early Sunday. — Evelyn Cheng, Yun Li

Shares of Oracle pop on TikTok deal

Shares of Oracle rose nearly 4% in premarket trading on Monday after news the software company will take a 12.5% stake in the newly created TikTok Global, with Walmart taking a 7.5% stake.  TikTok Global will be a U.S. entity that will control most of the popular app's global operations.

On Saturday, Trump gave his blessing to a deal that would see Oracle and Walmart take a minority stake in a U.S.-headquartered company called TikTok Global, appearing to contradict President Donald Trump's claims the deal has "nothing to do with China."  — Arjun Kharpal, Maggie Fitzgerald 

Bank stocks sell off amid report of alleged laundering orders

Financial shares came under pressure on Monday after a new investigation found that a number of global banks moved allegedly illicit funds over the past two decades despite warnings from U.S. officials. Shares of Deutsche Bank dropped nearly 8%, while JPMorgan fell almost 5% in premarket trading. Goldman Sachs, Citigroup and Bank of New York Mellon all traded at least 2.5% lower. The new report by BuzzFeed and the International Consortium of Investigative Journalists found the banks' internal compliance officers flagged a total of more than $2 trillion in transactions between 1999 and 2017 as possible money laundering or other criminal activity. The report cited confidential documents submitted by banks to the U.S. government, which do not necessarily indicate wrongdoing. — Yun Li

Airline, cruise operator equity slumps amid uptick in Covid cases

Shares of the world's largest airlines and cruise operators slumped in premarket trading Monday morning amid a resurgence in Covid-19 cases over the weekend both in the U.S. and in Europe. American, United and Southwest Airlines fell 3%, 3.7% and 3.6%, respectively, while Norwegian Cruise Line lost 4% and fellow operator Carnival shed 3.4%.

Those stocks have followed coronavirus developments in lockstep since the disease erupted across the globe earlier this year. Whether due to fear of infection or government restrictions, consumers tend to curb or cancel travel plans when Covid-19 cases are on the rise. As such, those companies that cater to travel have suffered heavy hits to revenues since March. — Thomas Franck

Technology sell-off to continue Monday

The sell-off in technology stocks was on pace to continue Monday with the Nasdaq Composite futures down nearly 1.5%. The technology heavy index is in correction territory, down more than 10% from its 52-week high. Shares of Netflix, Microsoft, Amazon, Facebook and Alphabet dropped more than 1% in premarket trading. Shares of Apple and Tesla dropped more than 2%. Megacap technology stocks were the first to recover from the Covid-19 sell-off but have experienced weakness this month.  — Maggie Fitzgerald 

U.K. considers new restrictions as virus cases surge

Officials in the United Kingdom are considering imposing new restrictions, including a 10 p.m. curfew, to help slow down the second wave of coronavirus infections. U.K.'s chief medical officer and chief scientific advisor warned Monday that the outbreak was currently on track to reach 50,000 new cases per day in mid-October without new restrictions. The country's benchmark FTSE 100 dropped more than 3% on the fear. 

Cases in several other European countries have risen sharply in recent weeks, with the per capita rate of new cases in Spain and France passing that of the United States. — Jesse Pound, Holly Ellyat

Nikola drops nearly 30% after founder Trevor Milton steps down as executive chairman

Shares of electric truck maker Nikola plunged 28% in premarket trading on Monday after the company announced its founder Trevor Milton is voluntarily stepping down from his roles as executive chairman and a member of its board. Earlier this month, Nikola was accused of fraud by Hidenburg Research. The short-selling firm said Nikola made false statements about Nikola's technology in order to grow and secure partnerships with auto companies, including General Motors

The electric truck maker said the board accepted Milton's resignation, adding that Stephen Girsky, former vice chairman of General Motors and a member of Nikola's board, has been appointed chairman of the board, effective immediately. Shares of Nikola are up more than 230% in 2020. — Maggie Fitzgerald 

Dow futures fall 500 points, technology weakness continues

Weakness in the stock market was set to continue on Monday, as the Dow futures fell more than 500 points. S&P 500 futures and Nasdaq Composite futures dropped 1.6% and 1.3%, respectively. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all fell for a third straight week last week, led by major losses in technology stocks. Apple, Microsoft and Amazon all dipped in premarket trading on Monday. 

Investors are also concerned about future stimulus from Congress and a possible second wave of infections in the U.K. among other things. 

It's been a rough September so far with the S&P 500 down 5%. The Nasdaq Composite is in a correction, down more than 10% from its recent high. — Maggie Fitzgerald