Dow Sinks 500 Points To Lowest Level In Two Months As Experts Fear Great Recession Style Collapse In China

Dow Sinks 500 Points To Lowest Level In Two Months As Experts Fear Great Recession Style Collapse In China

Share to Linkedin Stocks tumbled to their lowest level in months Monday after Chinese real estate giant Evergrande warned it's struggling to raise cash needed to make interest payments this week, sparking a widespread global sell-off and fueling concerns of the potentially systemic risks that could arise if the world's most indebted property developer starts defaulting on its massive $300 billion debt obligations. A trader works on the floor of the New York Stock Exchange. The Dow Jones Industrial Average plunged 525 points, or 1. 5%, to 34, 060 by 11:00 a. m. EDT on Monday, tumbling to its lowest level since July 20. Meanwhile, the S&P 500 and tech-heavy Nasdaq fell 1. 6% and 2. 2%, respectively, with energy and industrial stocks heading up losses. "The bad news keeps coming," LPL Financial Ryan Detrick said in a note Monday about Evergrande's mounting troubles, pointing out the company suspended trading of its onshore corporate bonds on Sunday after credit analysts warned against investing in them. The development takes Evergrande "one step closer to restructuring or default," Detrick adds, noting some analysts are concerned a default could be "the first domino to fall, sparking systemic risk similar to when [investment bank]