Prime News, International (Washington), September 21:- Stocks slumped on Wall Street Monday, mirroring losses overseas and putting the S&P 500 index on track for its biggest drop since February.
Worries about debt-engorged Chinese property developers — and the damage they could do to investors worldwide if they default — are rippling across markets. Investors are also concerned that the U.S. Federal Reserve could signal this week that it’s planning to pull back some of the support measures it’s been giving markets and the economy.
The S&P 500 fell 2.2% as of 1:21 p.m. Eastern. The benchmark index is also coming off two weeks of losses and is on track for its first monthly decline since January.
The Dow Jones Industrial Average fell 799 points, or 2.3%, to 33,783 and the Nasdaq fell 2.7%. Smaller company stocks were among the biggest losers. The Russell 2000 fell 3.2%.
Technology companies led the broader market lower. Apple fell 2.7% and chipmaker Nvidia shed 4.6%.
Banks posted big losses as bond yields slipped. That hurts their ability to charge more lucrative interest rates on loans. The yield on the 10-year Treasury fell to 1.32% from 1.37% late Friday. Bank of America fell 3.1%.
Oil prices fell 2% and weighed down energy stocks. Utilities and other sectors that are considered less risky held up better than the rest of the market.
There were few bright spots. Pfizer held its ground amid the broad market decline after announcing that its vaccine works for children ages 5 to 11 and that it will seek U.S. authorization for that age group soon.
The worries over Chinese property developers and debt recently centered on Evergrande, one of China’s biggest real estate developers, which looks like it may be unable to repay its debts.
Many analysts say they expect China’s government to prevent a blowup serious enough to cause losses to cascade through markets. But any hint of uncertainty may be enough to upset Wall Street after the S&P 500 has glided higher in almost uninterrupted fashion since October. It set its most recent closing high just over two weeks ago, on September 2. (MR, Inputs: Agencies).