Posted on 09/20/21
| News Source: FOX Business
Stocks were under pressure Monday as concerns over China’s property bubble roiled global markets ahead of the Federal Reserve’s upcoming policy meeting.
The Dow Jones Industrial Average plunged 586 points, or 1.7%, while the S&P 500 index and the Nasdaq Composite index declined 1.69% and 1.99%, respectively.
Chinese real estate developer Evergrande's shares tumbled more than 15% Monday amid worries the company will not be able to make a debt payment later this week.
Some market watchers have called Evergrande China’s "Lehman Brothers moment," drawing comparisons to the collapse of the U.S. investment bank, which began the 2008 financial crisis.
Hong Kong’s Hang Seng index tanked 3.3% while China’s Shanghai Composite was closed for holiday. The selling spilled over into Europe, where Germany’s DAX 30 fell 2.%, France’s CAC 40 lost 2.39% and Britain’s FTSE 100 dropped 1.61%.
Closer to home, investors are looking ahead to the Federal Reserve’s two-day policy meeting, where the central bank could announce when the tapering of its $120 billion per month of asset purchases will begin.