Early Monday afternoon trading saw the Dow Jones drop over 900 points. The Chinese property crisis, sparked by Evergrande’s imminent collapse, has finally approached global markets.
The Nasdaq lost 2.6% and the S&P 500 also fell 2.1% as speculation builds that Evergrande will default on its debt and won’t be able to make interest payments on two bonds, due on Thursday.
Collapsing market values come as the Federal Reserve is set to meet this week when it is suspected they will discuss cutting back on their bond-buying program that has boosted stocks during the pandemic.
