All major averages suffered the worst setback in a few weeks as US stocks plunged on Monday and concerns over the possible collapse of Chinese real estate firm Evergrande lowered sentiment.
The Dow plunged to 33,613.03 and ended the session at 33,970.47 with a loss of 614.41 points or 1.78 percent. The S & P 500 closed at 4,357.73, down 75.26 points (1.7%), below the daily low of 4,305.91. Meanwhile, Nasdaq settled at 14,713.80, recording a loss of 330.06 points (2.19%).
Traders were also looking forward to the long-awaited monetary policy announcement of the Federal Reserve Board on Wednesday. Central banks are widely expected not to change monetary policy, but can handle the outlook for asset purchase programs.
Minutes of the Federal Reserve Board’s last meeting showed that the central bank was ready to begin curtailing asset purchases by the end of the year.
Traders may pay close attention to the wording of the post-conference statement, with some recent disappointing economic data suggesting that the Federal Reserve Board may push the plan back.
China’s real estate giant Evergrande, the world’s most debt-rich real estate developer with over $ 300 billion in debt, will have to pay interest on bonds that expire on Thursday. The company has repeatedly warned that it could become the default.
Shares from the metals, energy, finance, semiconductors and housing sectors were under pressure. Technology stocks have also fallen.
Apple, Facebook, Microsoft, Alphpabet, Intel and Amazon all fell sharply.
United Health, Goldman Sachs, American Express, Chevron, JP Morgan Chase, Caterpillar, Boeing, IBM and Cisco Systems also plummeted.
In overseas transactions, stocks market Although some major markets were closed due to holidays, they closed at near low levels throughout the Asia Pacific region. Hong Kong’s Hang Seng Index plunged 3.3%, while Australia’s S & P / ASX 200 Index fell 2.1%.
Major European markets have also fallen. The UK’s FTSE 100 index fell 0.86 percent, Germany’s DAX plummeted 2.31 percent, and France’s CAC 40 fell 1.74 percent. The Pan-European STOXX 600 fell 1.67%.
In the bond market, government bonds have risen following the sharp recession seen in the last three sessions. As a result, yields on benchmark 10-year bonds, which move in the opposite direction of prices, fell to 1.313%, the largest daily decline since August.
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US stocks fell sharply as Evergrande’s tragedy hurt sentiment
Source link US stocks fell sharply as Evergrande’s tragedy hurt sentiment