RPT-US STOCKS-Wall St ends lower on lockdown fears, likely delay of stimulus

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* Shares of airlines and leisure companies tumble
* Big lenders fall on reports banks moved illicit funds
* Nikola drops sharply as founder resigns; GM shares fall

By Herbert Lash
NEW YORK, Sept 21 (Reuters) - Wall Street's main indexes
tumbled on Monday as concerns about new lockdowns in Europe and
possible delays in fresh stimulus from Congress raised fears the
U.S. economy faces a longer road to recovery than previously
hoped for.
The death of U.S. Supreme Court Justice Ruth Bader Ginsburg
also appeared to make the passage of another stimulus package in
Congress less likely before the Nov. 3 presidential election,
sparking large declines in the healthcare sector.
The Dow shed as much as 900 points and the CBOE Market
Volatility index .VIX , Wall Street's fear gauge, shot up to
its highest level in nearly two weeks. The S&P 500 ended down
about 9% from its record close on Sept. 2.
Economic concerns are weighing most heavily on stocks, said
David Joy, chief market strategist at Ameriprise.
"Although nothing is being spared, the economically
sensitive groups are getting hit the hardest," said Joy, adding
that "Washington appears to be no closer to a possible fourth
stimulus package."
Congress has for weeks remained deadlocked over the size and
shape of another coronavirus-response bill, on top of the
roughly $3 trillion already enacted into law. Healthcare providers came under pressure on uncertainty over
the fate of the Affordable Care Act (ACA), better known as
Obamacare, with shares of Universal Health Services UHS.N
falling hard.
Ginsburg's death could lead to a tie vote when the Supreme
Court hears a challenge to the constitutionality of ACA in
November, Mizuho, Stephens Inc and other financial services
firms said.
"It just kind of crowds out the agenda, the idea that we are
going to get a fiscal stimulus package before the election,"
said Ed Campbell, portfolio manager and managing director at QMA
in Newark, New Jersey.
"There is also just general election-related jitters ... and
possibly that we have a contested or delayed outcome."
Wall Street has tumbled in the past three weeks as investors
dumped heavyweight technology-related stocks following a
stunning rally that lifted the S&P 500 and the Nasdaq to new
highs after plunging in March as economies entered recession.
A new round of business restrictions would threaten a
nascent recovery and further pressure equity markets. The first
lockdowns in March led the S&P 500 to suffer its worst monthly
decline since the global financial crisis. US/
In contrast to last week's downturn, declines were led by
value-oriented sectors such as industrials .SPLRCI , energy
.SPNY and financials .SPSY as opposed to technology stocks
.SPLRCT .
Airline, hotel and cruise companies tracked declines in
their European peers as Britain signaled the possibility of a
second national lockdown. Europe's travel and leisure index
.SXTP marked its worst two-day drop since April. .EU
Among the largest gainers on the Nasdaq 100 was Zoom Video
Communications Inc ZM.OQ , which rose on the prospect that
fresh lockdowns would spur greater use of the product.
Unofficially, the Dow Jones Industrial Average .DJI fell
2% to end at 27,102.99 points, while the S&P 500 .SPX lost
1.28% to 3,276.87. The Nasdaq Composite .IXIC dropped 0.22%,
to 10,769.20.
JPMorgan Chase & Co JPM.N and Bank of New York Mellon Corp
BK.N fell on reports that several global banks moved large
sums of allegedly illicit funds over nearly two decades despite
red flags about the origins of the money. Nikola Corp NKLA.O plunged after its founder, Trevor
Milton, stepped down as executive chairman following a public
squabble with a short-seller over allegations of nepotism and
fraud. General Motors Co GM.N , which recently said it would take
an 11% stake in the electric truck maker, also slipped.