The Collapse of China's Evergrande Group isn’t the only reason the stock market is headed for its worst day in 2 months. Here are 5 other reasons

Market Watch ^ | 09/20/2021 | Mark DeCambre

[SeekAndFind]

U.S. stock benchmarks were on track to post the worst daily drop in more than two months, with the skid being blamed on the potential collapse of Evergrande. The Chinese property giant is threatening to default on $300 billion in debt that could ripple through global markets.

However, the sharp downturn by the highly leveraged real-estate sector, which the Financial Times notes makes up more than 28% of China’s economy, isn’t the only problem for markets on Monday.

Here are a few others.

Delta woes

The delta variant of COVID-19 is resulting in higher cases in the world’s largest economy.

The U.S. is now averaging more than 2,000 deaths daily, according to a New York Times tracker, the most since March 1, and consist almost entirely of unvaccinated people. Florida, which has vaccinated 56% of its population, is averaging 353 deaths a day. Texas, where 50% of the population is inoculated, is seeing 286 deaths a day, according to the Times. The two states account for more than 30% of all COVID-19 deaths since March 1.

Fed taper talk

Markets are fixated on the rate-setting Federal Open Market Committee’s Sept. 21-22 meeting, where Fed officials facing the prospect of removing accommodations that have propped markets up since the start of the COVID-19 pandemic in the U.S., even as the economic rebound looks uneven.

The Fed has been buying $80 billion of Treasurys and $40 billion of mortgage-backed securities each month since last June to keep long-term interest rates low and bolster demand. It said it would maintain the purchases until the economy hit a threshold of “substantial” progress on inflation and the labor market and the question the market is weighing is whether the time for tapering those asset purchases is now.

[bitt]

P

[rb22982]

Small companies are not small. Most have hundreds to thousands of employees. They are only small compared to the s&p 500 firms

[WASCWatch]

Maybe you should pull it now before the market heads to the bottoms.

Have you not heard the saying,”Pigs get fat, hogs get slaughtered.”

[GOPJ]

The U.S. is now averaging more than 2,000 deaths daily...

The newest thing is 'Rent a Casket'... They can cost between $2,000 and $20,000 and can be rented for as little as a thousand bucks... the dead person won't notice only the 'pine box' is going in the ground....

[Tell It Right]

When I say “small companies” I’m thinking more of the small-cap companies within the Russell 200 index. Do most of those have hundreds to thousands of employees?

[setter]

“Maybe you should pull it now before the market heads to the bottoms.”

It always comes back. I have trust in the US system for now.
I still remember folks telling me the markets would never recover in our lifetimes in 1987, 1999 and 2008

Where else you going to put it? Cd’s pay 1/2 percent.

[rb22982]

Yes, Russell 2k firms average enterprise value is over $ 3 billion. Truly small companies are not listed / traded. My firm was a R2k company until June and we have 6k employees with a total EV of $6B and we were right in the middle

[rb22982]

Put another way, there are 6 million companies in the US. Russell 2K firms are among the largest 3k in the country out of those 6 million