Dow Jones Industrial Average futures fell 613 points, or 1.78%, while S&P 500 and Nasdaq 100 futures fell 0.32% and 1.42%, respectively.
Chinese real estate developer Evergrande’s shares fell more than 15% on Monday amid fears the company will be unable to pay debts later this week.
Some market watchers have called Evergrande China’s “Lehman Brothers Moment” and made comparisons with the collapse of the US investment bank that sparked the 2008 financial crisis.
Hong Kong’s Hang Seng Index fell 3.3% while China’s Shanghai Composite was closed for public holidays. Sales spilled over to Europe, where Germany’s DAX 30 lost 2.37%, France’s CAC 40 lost 2.29% and the UK’s FTSE 100 lost 1.7%.
In the surrounding area, investors are looking to the Federal Reserve’s two-day monetary policy meeting at which the central bank could announce when it will begin reducing its $ 120 billion monthly bond purchases.
In stocks, economically sensitive companies including Caterpillar Inc. and Boeing Co. dragged the Dow down amid growth concerns.
Those worries led to a flight into government bonds, depressing the 10-year bond yield by 3 basis points to 1.33% and flattening the yield curve. Bank stocks declined, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. all went down.
Meanwhile, Pfizer Inc. and BioNTech SE said their COVID-19 vaccine is safe and effective in 5-11 year olds. The companies plan to apply for approval in the US, Europe and elsewhere as soon as possible.
Energy stocks, including Chevron Corp. and Haliburton Co., were weaker as West Texas Intermediate crude fell $ 1.42 to $ 70.55 a barrel.
Elsewhere, Barrick Gold Crop. and Newmont Corp. outperformed when gold rose $ 5.70 to $ 1,757.10 an ounce.
Economic data is easy on Monday with the National Association of Home Builders to release their latest assessment of the condition of the housing