Stocks are heading for their biggest slump in almost a year

[Omaha Steve]

Source: AP

By DAMIAN J. TROISE, STAN CHOE and ALEX VEIGA

Stocks slumped on Wall Street Monday, mirroring losses overseas and putting the S&P 500 index on track for its biggest drop in almost a year.

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 2.6% as of 2:41 p.m. Eastern. The benchmark index hasn’t closed that much lower since last October. The S&P 500 is also coming off two weeks of losses and is on track for its first monthly decline since January. The S&P 500 has gone an unusually long time without a pullback of 5% or more.

The Dow Jones Industrial Average fell 888 points, or 2.6%, to 33,701, while the Nasdaq fell 3.2%. The Hang Seng, Hong Kong’s main index, dropped 3.3% for its biggest loss since July. European markets fell about 2%.



A woman walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Monday, Sept. 20, 2021. Shares fell more than 3% in Hong Kong on Monday in holiday-thinned trading in Asia, with both Tokyo and Shanghai closed. (AP Photo/Vincent Yu)


Read more: https://apnews.com/article/business-asia-tokyo-hong-kong-shanghai-b52fc25ad8c51f726bd2fb3f75de6fa9

[ffr]

1. One of the online RW market sites said we should care because of three reasons

All three of them, had nothing to do with us, other than perhaps U.S. banks that may have lent Evergrande money, they'll take a hit on.

That has nothing to do with U.S. policy, so fuck anyone who tries to pin this on JRB. This is all China.

[Jose Garcia]

11. If the Chinese economy goes into a recession,

the Chinese will have less money to buy American products. Not Biden's fault, but certainly can have an effect on the US.

[modrepub]

2. It's Biden's Fault!

Really, politicians will take all the good but not the bad (unless they can pin it on another politician).

TBH I was waiting for the market to correct a bit being it's close to October. Have some money available for investment so I'll probably hold off to see how this all falls out.

Oh, and another thing, pay attention to what (stock) people do, not what they say.

Onward and downward...

[Evolve Dammit]

3. I wonder if any US banks, investment firms are linked?

[bucolic_frolic]

4. Reports today TFG made deals with Zuckerberg

Wonder if he made any deals with Xi. All this regulation in China is crashing their market and pricking their housing bubble. These things are global now, obviously, so this now returns to US markets during Biden's term, and you know TFG will be screaming at the first opportunity.

[Dopers_Greed]

5. Thanks China

[olddad65]

6. Not sure it is the Chinese govt's fault.

I had an interesting conversation with a Chinese friend of mine today. He seemed to know quite about this. Apparently, it is looking like a popular Chinese property investment firm is looking like it is really a ponzi scheme and the suckers stand to lose a total of 200 billion. He thinks the Chinese govt will be forced to intervene to minimize the carnage.
We will see. I doubt if the Chinese govt is the culprit, it isn't like their leader is donald trump.

[BeyondGeography]

10. I've read $300 billion, but you're right, it's the tycoons who are at fault

Not the government, directly at least. The big fear is, like our 2008 meltdown where the depth of the subprime crisis only became apparent once dominoes started falling, nobody knows if $300 billion is the number or just the tip of the iceberg.

[Yo_Mama_Been_Loggin]

7. Moscow Mitch says you ain't seen nothing yet.

[twodogsbarking]

8. It's one day.

[Johnny2X2X]

12. +425 today

Down 200 on the week or -0.60%. Hardly a ripple.

The fundamentals of the economy are very good, the markets will be back breaking records this Fall.