Dow falls 614 points as Evergrande fears spark steep sell-off

Dow falls 614 points as Evergrande fears spark steep sell-off

US stocks cratered on Monday amid ongoing fears of contagion from the Evergrande debt crisis in China and heightened uncertainty about the US raising its debt ceiling before an October deadline. The S&P 500 and Dow Jones experienced its worst day since last October, falling nearly 1,000 points at its lowest point. Both indexes saw a more than 5% decline from their September 2 highs. Evergrande is the second largest property developer in China and has more than $300 billion in liabilities as it fueled its growth over the past decade. But of more than $7 billion due in 2022 for the highly levered company, along with interest payments due this Thursday has many speculating that the company can't meet its debts. There are no signs yet that the Chinese government will step-in and aid the company. Meanwhile, a divided congress has been and Republicans and Democrats are showing little willingness for a compromise. Congress has to raise the debt ceiling by October, or it risks defaulting on its own obligations. Here's and why it is weighing so heavily on stocks despite it being a known risk factor for years. Former short-seller in 2012. The risk-off sentiment in stocks could