The Dow Jones Industrial Average dived nearly 800 points Monday afternoon as the market sold off on China property default fears.
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.
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
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
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 software maker came public in June.
Doximity also took out its 21-day exponential moving average for the first time since mid-August, when its breakout rally resumed.
DLocal got discussed early in Monday’s IBD Live show on Zoom.
Nvidia (NVDA), also on the IBD 50, shed nearly 5% and was close to testing its 50-day moving average. The graphics chip designer’s stock is almost all the way back to its 207.43 buy point, which would trigger the round-trip sell rule if it falls to the entry. Nvidia stock is 10% off its high.
Dow Jones Movers
All 30 Dow Jones components were lower in afternoon trade. Caterpillar (CAT) was the biggest loser, down 5%. Financials were weak — American Express (AXP), Goldman Sachs (GS), JPMorgan (JPM) and Travelers (TRV) lost over 3% each.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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