Stocks slumped on Monday, sending the Dow Jones industrial average to its biggest drop in months on worries that one of China’s largest property developers …
Stocks slumped on Monday, sending the Dow Jones industrial average to its biggest drop in months on worries that one of China’s largest property developers could default on billions of debt, which could threaten to spill over into other parts of the global economy. The blue-chip index shed 614 points, or 1.8%, to 33,970.47, its worst sell-off since July. The S&P 500, the benchmark used for most mutual funds, fell 1.7%, its biggest decline since May. The benchmark index hasn’t posted a decline of more than 1% since mid-August. It’s also coming off two weeks of losses and is on track for its first monthly decline since January. Technology companies led the broader market lower, with the Nasdaq falling 2.2%. Apple dropped 2% and chipmaker Nvidia shed 3.6%. ► Millennials are quitting jobs to day trade. Here’s the risk, reward. ► Gen Z turns to TikTok for finance advice: But regulators warn of investment schemes A number of factors have weighed on investors in recent weeks. Worries about debt-engorged Chinese property developers — and the damage they could do to investors worldwide if they default — rippled across global markets on Monday. The worries have recently centered on Evergrande, one of China’s biggest real estate developers, which looks like it may be unable to repay its debts. Investors, meanwhile, are also concerned that the Federal Reserve could signal this week that it’s planning to pull back some of the support measures it’s provided markets and the economy. The Fed is due to deliver its latest economic and interest rate policy update on Wednesday. To be sure, the stock market has remained resilient despite concerns about the economic effects of the spread of the Delta coronavirus variant and worries about the Fed’s plans.
