The Dow Jones Industrial Average dived nearly 800 points Monday afternoon as the market sold off on China property default fears.
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The Nasdaq sank 2.7%, the S&P 500 shed 2.3% and the Dow Jones industrials dropped nearly 2.3% in the stock market today. The Nasdaq and S&P 500 fell below their 50-day lines. Small caps tracked by the Russell 2000 lagged, down 3.1%. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Friday.
Among exchange traded funds, Innovator IBD 50 (FFTY) lost 3.1%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) fell 2.4%.
Wall Street’s sell-off followed Hong Kong’s Hang Seng index, which shed 3.3% Monday for its biggest single-day loss since July 27. The Hang Seng is down more than 27% from its January 2018 high, according to Dow Jones Market Data. The Shanghai composite is closed Monday for the mid-Autumn Festival holiday.
China stocks have been struggling amid rising worries that Beijing will let property developer China Evergrande Group fail, according to the Wall Street Journal. That would result in losses for shareholders and bondholders. The iShares China Large Cap ETF (FXI) and Invesco China Technology (CQQQ) dived over 4% each.
U.S. Stock Market Today Overview | ||||
---|---|---|---|---|
Index | Symbol | Price | Gain/Loss | % Change |
Dow Jones | (0DJIA) | 33795.46 | -789.42 | -2.28 |
S&P 500 | (0S&P5) | 4331.39 | -101.60 | -2.29 |
Nasdaq | (0NDQC ) | 14635.46 | -408.51 | -2.72 |
Russell 2000 | (IWM) | 215.51 | -6.86 | -3.08 |
IBD 50 | (FFTY) | 49.00 | -1.58 | -3.12 |
Last Update: 1:24 PM ET 9/20/2021 |
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.
Cumulative Covid-19 cases worldwide have topped 229 million, with more than 4.7 million deaths, according to Worldometer. In the U.S., cases are approaching 43 million with more than 692,000 deaths.
Growth Stocks To Watch
Steel Dynamics (STLD) gapped down to a loss of nearly 8% in heavy trade. The stock is sinking deeper below the 50-day moving average, a key sell signal for recent buyers.
Meanwhile, a once-promising rally in steel stocks is fading fast, with Nucor (NUE), Ternium (TX) and other stocks in the industry suffering big losses.
IPO Leader Revolve (RVLV) dropped more than 6% as the stock tries to complete the right side of a new cup base. For now, the proper entry point stands at 74.92. In addition, an early entry at resistance near 67.80 is also in play. The top IPO stock appeared in last week’s IPO Leaders story.
Over in the IBD 50, Doximity (DOCS) plunged 11% in heavy volume. The stock is now 21% off its Sept. 10 high but remains well extended from a 65.52 buy point of an IPO base. The medical…
Read More: Dow Jones Dives, Nasdaq Loses Support As China Property Fears Sink Stock