Posted on 09/20/2021 1:41:10 PM PDT by lasereye
Uncertainty on several fronts delivered Wall Street its largest losses in months amid a broad fall in global stocks.
Investors fretted over the implications and financial contagion of the potential failure of China’s Evergrande property group. A looming Federal Reserve policy meeting, Congressional budget and debt ceiling wrangling in Washington, and stretched stock valuations all contributed to a sense of uncertainty in markets.
The Dow Jones Industrial Average closed down 614 points, or 1.8%, on Monday after the index fell 166 points Friday—marking three straight weeks of declines. The S&P 500 lost 2.2% on Monday and the Nasdaq Composite dropped 2.1%. It was the largest one-day decline for the S&P and Nasdaq since May, and the steepest loss for the Dow since July.
All of the S&P 500’s 11 sectors closed in the red—utilities were best off with a 0.2% slide and energy stocks were the worst off, down 3.1%. Caterpillar (ticker: CAT) and Goldman Sachs (GS) led the Dow lower, off 4.5% and 3.4%, respectively. Big Tech’s Amazon.com (AMZN) lost 3.1%, Facebook (FB) fell 2.5%, and Apple (AAPL) slid 2.1%.
“Periodic setbacks are always uncomfortable because they come with bad news and uncertainty,” wrote Keith Lerner, co-Chief Investment Officer and Chief Market Strategist at Truist Advisory Services, on Monday. “However, they are also the admission price to the market. Recall, the S&P 500 has only had two other years since 1980 where it did not see at least one intra-year pullback of more than 5% (the deepest pullback prior to today was just 4% this year).”
(Excerpt) Read more at barrons.com ...
Evergrande is one reason. Not the only one. Other reasons include the fight in Washington over spending and our debt limit, Xi’s stated desire to move China toward a more traditional communist model and unease with all things Biden.
Wrong, the S&P lost 1.7% today.
Had to happen. Market ridiculously overvalued. Evergrande is just the excuse. Hopefully another 10% down so my 21-year old son can put a lot of hard-earned cash into his IRA. As his friends sat on their asses the last 2 years collecting UE and then blowing it, he has worked like mad in tough jobs and saved every penny.
And what exactly do they have to prove that this is caused by Evergrande situation in China and not something else like the immigration crisis?
Chinese expert told me this is the tip of the iceberg.
Nothing. “Analysts” always know just what happened— right after the closing bell. Ad hoc explanations are worth every penny they cost.
Somebody needs to ask the computers that did the trading...only they know for sure!
Seems like every time people start dancing in the streets with the latest stock market drops, they end up recovering and going further ahead in the days or weeks that follow. As bad as today way, the Dow is up 12.4% for the year despite Biden being POTUS. Leftist money is propping up the markets. I suspect this will continue unless we have some serious financial collapses, in which case said leftists will start sheltering their wealth.
First China launched COVID on us now Evergrand.
“Hopefully another 10% down so my 21-year old son can put a lot of hard-earned cash into his IRA”
even better, search out any babies that get thrown out with the bathwater ...
The Evergrande crisis involves not paying billions of dollars that is owed to bondholders in the US and Europe. It’s all about the money, they don’t give a rat’s about a bunch of poor souls stuck in river bed in Texas.
Ever grande is 98% of it. The rest is not new
Yes it doesn’t make sense that problems at one company in the entire world would sink stock markets. That situation is a convenient excuse for policy failures.
I know the markets is in a ridiculous place right now. I have cash in my portfolio but too risky to buy at these levels.
Wait until the overheated Housing Market collapses and People will refuse to pay their 3% 30 Year Mortgages.
The Lenders will have to offer 0% Mortgage terms to their existing Mortgage Holders so they don’t end up owning Millions of Houses.
I hate it when the media tries to assume the reason why the market moves in a certain direction as well, but I think we can almost all agree that Evergrande was the main culprit. News broke over the weekend confirming the dire fiscal situation of the company and Chinese-related equities fared the worst today (compared to everything else).
I agree that the printing presses from the Fed largely drives the market at this point, but at some point I would think the masses (even the leftist ones) would start revolting against the swamp with increasing inflationary pressures. If deep state politicians want to maintain their ‘popularity’ and try to contain their constituents’ anger, would the Fed actually get serious by curtailing QE and raising interest rates?
The Dow finished the day down 1.78%. My stock portfolio finished the day down 0.62%.
That isn't because I'm brilliant, but because I have a portion of my investments in counter cyclicals such as bear funds, oil and metals.
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