* Travel-related stocks fall as COVID-19 cases soar
* Hasbro falls after reporting quarterly results
* Oracle down as rival SAP scraps medium-term margin goals
* Indexes down: Dow 2.7%, S&P 2.2%, Nasdaq 2.2% (New throughout, updates prices, market activity and comments; new byline, adds NEW YORK dateline)
NEW YORK, Oct 26 (Reuters) - U.S. stocks tumbled on Monday, with the S&P 500 headed for its biggest daily decline in almost seven weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.
The United States, Russia and France set daily records for coronavirus infections. The number of hospitalized Americans with COVID-19 rose to a two-month high.
Travel-related stocks, vulnerable to COVID-19 related curbs, dropped. The S&P 1500 airlines index fell 5.9% and cruise line operators Carnival Corp and Royal Caribbean Cruises Ltd shed 8.8% and 11.2%, respectively.
“Fears about COVID-19 resurgence and the continued failure to reach a fiscal policy package between Republicans and Democrats has investors unnerved,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
“Those are the two biggest drivers of today’s decline.”
The energy index tracked a more than 3% fall in oil prices, falling 3.9%. The economically sensitive industrials and financials also posted steep declines among S&P sectors.
In talks on U.S. fiscal relief from the pandemic, Treasury Secretary Steve Mnuchin said there were a number of areas in House of Representatives Speaker Nancy Pelosi’s plan that President Donald Trump cannot accept.
Wall Street’s fear gauge hit its highest in more than seven weeks as uncertainty grew over the Nov. 3 election. Some 60 million Americans have voted in a record-breaking early turnout as Trump and Democratic challenger Joe Biden entered their final week of campaigning.
It is also one of the busiest weeks of the third-quarter earnings season that will see results from mega-cap U.S. tech firms including Apple Inc, Amazon.com Inc, Google-parent Alphabet Inc and Facebook Inc.
The tech sector is among the only three sectors apart from healthcare and consumer staples expected to post an increase in profit from a year earlier.
Of the 139 companies in the S&P 500 that have reported earnings so far, 83.5% have beaten Wall Street expectations, according to Refinitiv data.
At 2:21 p.m. ET (1821 GMT), the Dow Jones Industrial Average fell 779.76 points, or 2.75%, to 27,555.81. The S&P 500 lost 78.66 points, or 2.27%, to 3,386.73 and the Nasdaq Composite dropped 251.20 points, or 2.18%, to 11,297.08.
Software company Oracle Corp fell 4.1% after German rival SAP abandoned medium-term profitability targets and warned of a longer-than-expected recovery time from the pandemic hit.
Hasbro Inc tumbled 10% as quarterly adjusted revenue fell due to coronavirus-led delays in production of movies and TV shows.
Companies deemed stay-at-home winners including Amazon.com Inc, Zoom Video Communications Inc and video game companies Activision Blizzard Inc and Take-Two Interactive Software Inc rose between 0.4% and 1.4%.
Declining issues outnumbered advancing ones on the NYSE by a 8.06-to-1 ratio; on Nasdaq, a 5.49-to-1 ratio favored decliners.
The S&P 500 posted three new 52-week highs and two new lows; the Nasdaq Composite recorded 26 new highs and 45 new lows. (Additional reporting by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Arun Koyyur and David Gregorio)
Nuestros Estándares: Los principios Thomson Reuters.