The Dow Jones Industrial Average closed more than 600 points overnight, while the S&P500 and Nasdaq ended their biggest single-day losses since May this year. Because investors are worried that China’s default on debt. Evergrande Group, China’s second largest real estate company, will have an impact on the global economy.
The Dow Jones Industrial Average closed at 33,970.47, down 614.41 points, or -1.78%. The S&P500 closed at 4,357.73, down 75.26, or -1.70%. The Nasdaq closed at 14,713.90, down 330.07, or -2.19%.
US and global stock markets are under panic. After Evergrande issued a statement admitting it was facing liquidity problems. and may not be able to pay the debt as scheduled TS Lombard analyst Larry Brenard warned that the Evergrande debt default would escalate the financial crisis, jeopardizing the global economic recovery.
Investors are eyeing Evergrande, which pays interest in two installments this month. On Sept. 23, the company pays $83.5 million in interest on its March 2022 bonds, and On Sept. 29, the company is due to pay interest on $47.5 million on its March 2024 debentures. The company will have to restructure the debt. Investors who buy Evergrande bonds are expected to receive a low share of the repayment.
The CBOE Volatility Index (VIX), or CBOE Volatility Index (VIX), is a gauge of investor anxiety on Wall Street. It rose above 28 on Monday (Sept. 20), the highest level since May.
The 11 stocks calculated in the S&P500 index all fell. Energy stocks were down 3.04 percent, with Halliburton down 3.31%, ConocoPhillips was down 3.14 percent, Exxon Mobil was down 2.66%, Chevron was down 2.06 percent.
Banking stocks fell 2.9 percent after the yield on 10-year U.S. Treasuries slid to 1.304 percent on concerns about Evergrande’s default. Bank of America, down 3.43 percent, JPMorgan, down 2.99%, Goldman Sachs, down 3.41 percent.
Technology stocks fell sharply. And it was among the factors that drove the Nasdaq down more than 2 percent, with Amazon down 3.08 percent, Facebook down 2.47 percent, Microsoft shares down 1.86 percent, Apple shares down 2.14 percent. Fabette was down 1.48 percent, while Micron Technology was down 2.6 percent.
Blockchain business shares fall After the bitcoin price crashed in stock markets around the world. As well as concerns that the Treasury Department and the Federal Reserve (Fed) are preparing to regulate stablecoin risks, Grayscale Bitcoin Trust fell 8.34 percent, Coinbase fell 3.53%, Silvergate Capital fell 8.53%, and Marathon Digital lost 8.53%. down 5.44%
However, airline stocks rebounded after the US government announced that In November, the US will relax travel restrictions for vaccinated passengers from China, India, the United Kingdom. American Airlines was up 3.04 percent, United Airlines was up 1.71 percent, Delta Air Lines was up 1.67 percent, and Southwest Airlines was up 1.02%.
Investors will keep an eye on the Federal Reserve’s (Fed) monetary policy meeting on Sept. 21-22 amid concerns the Fed may signal a QE cut at the meeting, headed by Jerome Powell. The Fed chairman had previously signaled that The Fed is likely to begin cutting its QE limit before the end of the year.
For the latest US economic data released last night. The National Association of Home Builders (NAHB) of the United States revealed that The Homebuilder Confidence Index rose 1 point to 76 in September, helped by falling timber prices.
Other US economic data scheduled to be released this week include: August home building and building permits, August used home sales, weekly jobless claims, August Chicago Fed nationwide economic activity index, managers index. Purchasing (PMI) Initial Manufacturing Sept from Markit, Purchasing Managers Index (PMI) Initial Services Sept from Markit. and new home sales in August
.
