Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Wall Street extends global slump on China fears

09/20/2021 | 05:50pm EDT

September is living up to its reputation as being the worst month for the stock market all year.

On Monday U.S. stocks sank in the biggest sell-off in months as investors worried that trouble in China could result in a further slowdown in global economic growth.

The Dow tumbled 614 points. The S&P 500 dropped 75. The Nasdaq fell 330 points.

It's the potential default of Evergrande, China's second biggest property developer, which reverberated throughout global markets. The fear is that if Evergrande doesn't pay its debts - lenders will go into protective mode and turn off the lending spigot, which would curtail corporate spending and thus slow down the economy.

Tesla, which has big exposure to the Chinese market, was down nearly 4 percent. Heavy-duty equipment maker Caterpillar, lost about 4-1/2 percent

But that wasn't the only thing behind the sell-off, says Andy Kapyrin, co-head of investments at Regent Atlantic Capital.

"This is a very risky week. Here's why it's risky: The Federal Reserve is going to meet later this week and likely announce a taper of its big financial stimulus programs. This is a high risk environment because what we're experiencing around the world, not just in China, but in parts of the US too, is a slowdown in economic activity. The economy still growing, just not at the same pace as it was six months ago. All this happening at once is making investors a little bit skittish."

Bitcoin turned out not to be a place to hide. The value of the cryptocurrency tumbled more than the stock market. The price of bitcoin fell almost 6-1/2 percent to around $44,000.

There was one group, which rallied despite the market's overall funk. The Biden Administration announced plans to ease the travel ban for international travelers who are fully vaccinated. American Airlines was the best performing airline, gaining 3 percent.

© Reuters 2021
Latest news "Economy & Forex"
06:36aStellantis, LGES strike battery production deal for North America
06:28aApple expected to unveil new Macs with more powerful chips
06:26aThousands of migrant workers in Kashmir moved to secure locations, hundreds flee
06:25aEnterprise software firm Informatica eyes nearly $9 bln valuation in U.S. IPO
06:23aPakistan's rupee drops to record low on reports IMF tranche talks failed
06:21a'ENOUGH'S ENOUGH' : tight U.S. job market triggers strikes for more pay
06:19aToyota to invest $3.4 billion on U.S. automotive batteries through 2030
06:19aEnterprise software firm Informatica seeks to raise $928 mln in U.S. IPO
06:16aCanada's 'tax the rich' plan leaves big debt risk untouched
06:16aS.Korea commits to 'challenging goal' of cutting emissions to 40% of 2018 levels by 2030
Latest news "Economy & Forex"