January 7 Market Close: GovCon Index, US Stocks Fall 2% as China Fears Grow

The GovCon Index continued to mirror deep losses in U.S. and global financial markets Thursday with a decline of 2.293 percent to 74.525 as investor fears over China’s economy and falling oil prices grew.

Science Applications International Corp. (NYSE: SAIC) and Booz Allen Hamilton (NYSE: BAH) were the Index’s only two gainers Thursday after both government services contractors received upgrades from Wells Fargo in notes to investors.

SAIC’s stock climbed 3.88 percent to $44.45 and is down 5.28 percent over 12 months, while Booz Allen shares rose 11 cents to $30.76 Thursday and are up 19.46 percent over 52 weeks.

The S&P 500 composite index plummeted 2.37 percent to 1, 943.09 and is nearly 9 percent off of its 52-week intraday high, or 1 percent near correction territory, while the Dow Jones Industrial Average and the NASDAQ composite index are both in a correction.

By comparison, the GovCon Index is down 5.27 percent from its most recent high of 78.669 on Dec. 1, 2015.

According to Reuters, China is moving to speed up the devaluation of its currency in an effort to boost exports and that move has sparked concerns among investors and economists that the Chinese economy is weaker than previously thought.

Crude oil futures in New York fell 2.06 percent to $33.27 a barrel, a settlement barely above a new 12-year low mark.

Market Summary