Dow plummets 500 points as Evergrande contagion fears ripple across markets

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 9, 2020.

  • US stocks plunged on Monday amid ongoing fears of contagion from Evergrande’s rising risk of default on its more than $300 billion in liabilities.
  • The heightened market volatility comes amid a historically weak September for stocks.
  • Investors are also grappling with the rising uncertainty of the US debt ceiling, which needs to be raised by a divided Congress by October.
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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.

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 an upcoming debt crunch 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 unable to raise the debt ceiling 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 where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

The risk-off sentiment in stocks could lead to a prolonged period of heightened volatility as the S&P 500 tests crucial support levels like its 50-day moving average, according to technical analyst Katie Stockton of Fairlead Strategies.

Cryptocurrencies plunged on Monday, with both bitcoin and ether falling more than 5% below key support levels. The sell-off in crypto highlights the heightened correlation between it and stocks during down-periods for the market.

El Salvador took advantage of the sell-off in crypto and said it bought an additional 150 bitcoins on Monday, bringing its total holdings to more than $30 million.

Despite the stock market sell-off spurred by the Evergrande debt crunch, three top analysts said this isn’t China’s “Lehman Brothers” moment and the Chinese government can step in to contain the mess and insulate its economy.

Oil prices fell. West Texas Intermediate crude dropped as much as 1.53%, to $70.72 per barrel. Brent crude, oil’s international benchmark, fell 1.11%, to $74.50 per barrel.

Gold jumped as much as 0.38%, to $1,758.00 per ounce.

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Dow surges 236 points as investors overcome growth concerns to erase early losses

FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., February 28, 2020. REUTERS/Brendan McDermid
Traders work on the floor at the NYSE.

  • The Dow soared more than 200 points on Wednesday, reclaiming a big portion of losses suffered during the previous session.
  • The S&P 500 also finished higher, fronted by a climb in the energy sector as oil prices leapt.
  • Industrial production in August returned to pre-pandemic levels, said the Federal Reserve.
  • See more stories on Insider’s business page.

US stocks closed higher Wednesday, with strength from the energy sector and economic data helping the market recover some ground lost during declines this month.

The Dow Jones Industrial Average turned higher and jumped more than 200 points, retracing most of Tuesday’s loss of 292 points. Oil industry heavyweight Chevron was among Wednesday’s winners as energy stocks climbed with a rally in oil prices.

The S&P 500’s energy sector gained nearly 4%, outperforming the 10 other sectors tracked on the equity benchmark. Oil prices jumped, with West Texas Intermediate crude up 3.3% at $72.75 per barrel, extending gains after a larger-than-expected drawdown in weekly US oil stockpiles was reported Tuesday.

“Crude oil has been ripping higher on disrupted production leading to big declines in inventories,” said Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors, in a note Wednesday. Oil production has been hampered by the recent Ida and Nicolas hurricanes.

Here’s where US indexes stood at 4:30 p.m. on Wednesday:

  • S&P 500: 4,480.88, up 0.85%34,814.13

Investors also received a better reading than anticipated for manufacturing activity in the New York region from the Empire State Manufacturing Survey for August and the Federal Reserve said industrial production returned to pre-pandemic levels last month.

The Fed’s two-day policy meeting starts on September 21 and will feature its summary of economic projections, or the so-called dot-plot chart of interest-rate expectations.

Around the markets, shares of Wynn Resorts and Las Vegas Sands extended losses into a second session after Macau, China’s gambling enclave, said it will conduct a regulatory review of the industry.

Coinbase has increased the size of its bond sale to $2 billion after receiving an influx of bids from private investors.

Hedge fund billionaire Ray Dalio said on CNBC he believes regulators will take control of bitcoin if there’s mainstream success for the cryptocurrency.

Gold fell 0.7% to $1,791.08 per ounce. The yield on the US 10-year Treasury note rose to 1.31%.

Bitcoin gained 1.9% to $47,949.73.

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US stocks slip as investors weigh global growth concerns against Fed stimulus plans

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Traders on the floor of the NYSE.

  • US stocks slipped Wednesday, adding to Tuesday’s losses.
  • Wednesday’s session got underway with a shortfall in Chinese retail sales for August.
  • Investors are also anticipating a Fed announcement on tapering.

US stocks moved slightly lower Wednesday following disappointing data from China, the world’s second-largest economy, while investors prepared for the Federal Reserve’s anticipated plan to start drawing down stimulus measures.

Investors started Wednesday’s session with Chinese retail sales growth slowing to 2.5% year-on-year in August, missing the 7% growth expected by economists in a Bloomberg poll.

Major indexes continued their slide from Tuesday’s session. The S&P 500 fell even after data showed US consumer price index inflation cooled to 5.3% in August from a 13-year high of 5.4% in July.

Here’s where US indexes stood shortly after 9:30 a.m. on Wednesday:

“Basically, traders are still worried that despite the slow inflation reading and a weak set of US NFP data, the Fed is still likely to start the tapering this year. It is still possible that next week we may get some timeline from the Fed in relation to their tapering of the loose monetary policy,” said Naeem Aslam, chief market analyst at AvaTrade, in a note.

Around the markets, gold rose 0.2% to $1,792.71 per ounce. The yield on the US 10-year Treasury note slipped to 1.28%.

Oil prices climbed, with West Texas Intermediate crude up 1.9% at $71.90 per barrel.

Bitcoin rose 9% to $47,427.58.

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Dow jumps 261 points as investors brace for latest inflation data

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange.

  • The Dow jumped over 260 points Monday, while the Nasdaq Composite declined slightly.
  • Investors were getting ready for consumer price inflation data due Tuesday.
  • The inflation reading will arrive before next week’s Federal Reserve meeting.
  • See more stories on Insider’s business page.

US stocks closed mixed Monday as investors prepared for a monthly consumer inflation report due just before the Federal Reserve will meet to discuss its outlook on recovery in the world’s largest economy.

The Dow Jones Industrial Average moved solidly higher, rising 261 points, with UnitedHealth Group up and Chevron gaining as oil prices rose. But the Nasdaq Composite came under pressure and the S&P 500 eked out a small gain after five straight losses. Stocks started the session higher with some support coming from a decline in 7-day average COVID-19 infections.

This week’s economic calendar will include consumer price index inflation data for August on Tuesday. CPI is expected to come in at 5.3%, according to economists polled by Bloomberg.

“Investors don’t want to have massive positions before the inflation data as the risks are to the upside as COVID inflation continues to hamper supply chains. If inflation comes in hotter-than-expected, taper expectations could shift from December to November,” wrote Ed Moya, senior market analyst at Oanda, in a note.

Here’s where US indexes stood at 4:00 p.m. on Monday:

The Fed’s two-day meeting will begin on September 21 and policy makers will release a summary of economic projections, or the dot-plot chart of interest-rate expectations.

Around the markets, MicroStrategymade another big purchase of bitcoin, bringing the value of its holdings of the most traded cryptocurrency to about $5.1 billion.

Litecoin surged and then sharply fell after a fake press release said that Walmart is partnering with the coin for payments.Mohamed El-Erian said supply chain disruptions around the world are set to continue for a few years, and warned high prices across economies could bring a return to a 1970s-style stagflationary environment.

Gold rose 0.2% to $1,792.71 per ounce. The yield on the US 10-year Treasury note slipped to 1.32%.

Oil prices climbed. West Texas Intermediate crude rose 1.2% to $70.55 per barrel. Brent crude, oil’s international benchmark, gained 0.8%, to $73.48 per barrel.

Bitcoin lost 3% to $44,733.16.

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US stocks rebound from multi-day skid as concerns over Fed stimulus slowdown ease

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US stocks jumped higher on Friday, partly rebounding from a four-day losing streak as concerns over the Fed’s tapering schedule began to ease.

Investors have been looking for clues as to when the Federal Reserve may begin to wind down its monthly $120 billion bond purchases implemented amid the COVID-19 pandemic to shore up credit markets. But a weak August jobs report has investors less concerned about the tapering schedule as the Fed leans more dovish.

President Biden’s more than hour-long conversation with Chinese President Xi Jinping could also be lifting market sentiment on Friday, as hope builds that trade relations between the two countries will be improved.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

Shares of buy now, pay later provider Affirm soared as much as 22% on Friday after the company reported better-than-expected revenue for its fiscal fourth-quarter, and raised revenue guidance for its fiscal year of 2022.

Cathie Wood’s Ark Invest sold more than $100 million worth of Tesla this week, according to daily trade updates. The sales come even as Ark believes Tesla could soar 300% from current levels.

Oil prices jumped. West Texas Intermediate crude was up as much as 2.35%, to $69.74 per barrel. Brent crude, oil’s international benchmark, jumped 2.18%, to $73.01 per barrel.

Gold fell as much as 0.21%, to $1,796.30 per ounce.

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US stocks falls as investors worry over prospects of a slowing economic recovery

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Traders on the floor of the NYSE.

  • Major indexes fell Wednesday, stretching losses from the previous day’s session.
  • The Nasdaq Composite slipped from record highs notched on Tuesday.
  • A report from the Fed said the central bank was observing a slight slowdown in economic activity.
  • See more stories on Insider’s business page.

US stocks closed lower Wednesday as investors assess more signs of a slowdown in the economy’s recovery following a pandemic-led recession last year.

The Dow Jones Industrial Average added to losses from the previous session and Nasdaq Composite declined from Tuesday’s record high.

The Federal Reserve in its so-called Beige Book report Wednesday afternoon said there’s been a slight deceleration in economic activity from the moderate pace of recovery in early July through August. Stock investors have been showing some caution after last week’s US August jobs report, with the 235,000 payroll additions falling fall far short of expectations.

Here’s where US indexes stood at 4:00 p.m. on Wednesday:

The Fed’s report, which characterizes changes in economic conditions across its 12 districts, said the deceleration was largely attributable to a pullback in dining out, travel, and tourism, reflecting safety concerns due to the rise of the Delta variant of the coronavirus.

The Fed will hold a two-day meeting starting on September 21 and will release its summary of economic projections, or its dot-plot chart of interest-rate expectations.

Around the markets, Coinbase shares fell, with the Securities and Exchange Commission planning to sue the crypto exchange if it releases its lending product, a move that led CEO Brian Armstrong to complain about the regulator’s “sketchy behavior”.

Globalstar soared on ongoing speculation that its satellite communication technology may be included in Apple’s new iPhone models.

Gold fell 0.2% to $1,789.73 per ounce. The yield on the US 10-year Treasury note fell to 1.33%.

Oil prices climbed. West Texas Intermediate crude rose 1.5% to $69.34 per barrel. Brent crude, oil’s international benchmark, gained 1.3%, to $72.65 per barrel.

Bitcoin fell by 1% to $46,326.77 after plunging Tuesday during El Salvador’s rocky rollout of the cryptocurrency as legal tender.

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US stocks mixed with Nasdaq hitting records as investors mull prospects for the economy

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US stocks were mixed on Tuesday, with the Nasdaq hitting record highs while the Dow Jones Industrial Average fell more than 250 points.

Ongoing economic uncertainty was in focus on Tuesday after Goldman Sachs downgraded its 2021 GDP forecast to 5.7% from a prior estimate of 6.2% due to the ongoing spread of the COVID-19 Delta variant. The downgrade came after last week’s soft August jobs report, with the US adding only 235,000 jobs.

“The Delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service-sector recovery will both be headwinds in the medium term,” Goldman said.

But mega-cap tech stocks shined on Tuesday, with both Apple and Netflix cruising to record all-time highs. Apple sent out invitations for a September 14 media event where it will likely reveal its iPhone 13 lineup.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Bitcoin and ether both staged intra-day declines of about 20% on Tuesday, while other altcoins like dogecoin fell about 30%. The moves in crypto came as El Salvador officially adopted bitcoin as legal tender on Tuesday.

The heightened volatility in cryptocoins caused a service disruption at Coinbase, causing shares to fall as much as 6%. The crypto exchange platform said some transactions were delayed or canceled, but the issue has since been resolved.

Shares of Match Group soared as much as 15% in early Tuesday trades after it was selected to be added to the S&P 500 index later this month.

Solana’s sol token rocketed 37% higher in the past 24 hours as the cryptocurrency pulled in record investments thanks to its DeFi and NFT capabilities.

George Soros slammed BlackRock’s investment push into China as a “tragic mistake” that will ultimately hurt the US.

Shares of Tesla jumped as much as 4% to its highest level in four months amid a bullish technical setup in which its 50-day moving average crossed above its 200-day moving average.

Oil prices fell. West Texas Intermediate crude was down as much as 1.63%, to $68.16 per barrel. Brent crude, oil’s international benchmark, fell 0.83%, to $71.64 per barrel.

Gold fell as much as 2.02%, to $1,796.60 per ounce.

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S&P 500 hits 54th record close of the year ahead of crucial jobs report

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  • US stocks closed higher on Thursday as investors await Friday’s crucial jobs report.
  • The S&P 500 closed at a record high for the 54th time of the year, while the Nasdaq also hit a new record close.
  • Jobless claims fell to 340,000 last week, beating Bloomberg economist estimates of 345,000.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks gained on Thursday, with the S&P 500 and Nasdaq both closing at record highs ahead of Friday’s crucial jobs report. For the S&P 500, it was the 54th record close of 2021.

The August jobs report will likely influence the Fed’s decision as to when to and how much it should taper its monthly bond purchases of $120 billion, which was put into place to calm credit markets during the pandemic.

Meanwhile, jobless claims fell to their lowest level since March 2020 last week, hitting 340,000. That beat economist estimates of 345,000. Continuing claims fell to 2.75 million for the week, coming in slightly below estimates.

The jobless claims data signals ongoing strength in the economic recovery from COVID-19, which coincides with a strong second-quarter earnings season from S&P 500 companies.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Despite the stock market’s ongoing record surge, there are still risks that could derail the historic rally. DataTrek’s Nicholas Colas outlined seven potential risks that could push stocks lower into year-end.

Shares of Chewy plunged as much as 10% after second-quarter earnings results missed analyst estimates and showed a slow-down in growth.

The US division of Binance is considering an IPO within the next three years as cryptocurrency interest soars among investors.

Also in crypto, the IRS said it posed as a crypto trader called “Mr. Coins” in a $180,000 dark-web drug sting. Cryptocurrencies are often used as a form of payment for dark-web marketplaces.

Beijing will set up a new stock exchange in the capital to support and facilitate the development of small and medium sized businesses, China’s president Xi Jinping said on Thursday.

Cardano’s ada cryptocurrency soared above $3 for the first time ever on Thursday after network upgrades enabled smart contracts. Meanwhile, JPMorgan believes the surge in retail trading spilled over to cryptocurrency altcoins that have seen a surge in popularity this summer.

Oil prices jumped. West Texas Intermediate crude was up as much as 1.71%, to $69.76 per barrel. Brent crude, oil’s international benchmark, rose 1.70%, to $72.81 per barrel.

Gold fell as much as 0.24%, to $1,811.60 per ounce.

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S&P 500, Nasdaq hits record highs after jobless claims fall to lowest since March 2020

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  • The S&P 500 and Nasdaq hit record highs Thursday after jobless claims fell to the lowest level since March 2020.
  • Jobless claims fell to 340,000 last week, beating Bloomberg economist estimates of 345,000.
  • Continuing claims fell to 2.75 million for the week, coming in slightly below estimates.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks moved higher on Thursday, with the S&P 500 and Nasdaq hitting record highs after jobless claims fell to their lowest level since March 2020.

Jobless claims fell to 340,000 last week, beating economist estimates of 345,000. Meanwhile, continuing claims fell to 2.75 million for the week, coming in slightly below estimates.

The jobless claims data signals ongoing strength in the economic recovery from COVID-19, which coincides with a strong second-quarter earnings season from S&P 500 companies.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

Shares of Chewy plunged as much as 10% after second-quarter earnings results missed analyst estimates and showed a slow-down in growth.

The US division of Binance is considering an IPO within the next three years as cryptocurrency interest soars among investors.

Cardano’s ada cryptocurrency soared above $3 for the first time ever on Thursday after network upgrades enabled smart contracts.

JPMorgan believes the surge in retail trading spilled over to cryptocurrency altcoins that have seen a surge in popularity this summer.

Oil prices jumped. West Texas Intermediate crude was up as much as 1.30%, to $69.48 per barrel. Brent crude, oil’s international benchmark, rose 1.10%, to $72.38 per barrel.

Gold fell as much as 0.08%, to $1,814.60 per ounce.

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Nasdaq notches record high as hiring slowdown supports the potential for continued Fed stimulus

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  • The Nasdaq Composite closed at a record high Wednesday as trading in September kicked off.
  • The S&P 500 also rose as slower private-sector hiring stoked hopes the Fed will keep stimulus measures in place.
  • Investors are looking forward to Friday’s jobs report for August from the Labor Department.
  • See more stories on Insider’s business page.

The Nasdaq Composite index closed at a record high Wednesday, fueled by hopes of further Federal Reserve support for the economy after ADP employment data fell short of expectations.

Tech stock gains helped both the Nasdaq and the S&P 500 advance, but the Dow Jones industrial average was hurt as industrial equipment maker Caterpillar was among its losing components.

Private payrolls rose by 374,000 in August, missing the estimate of 613,000 from economists surveyed by Bloomberg. August marked the second-smallest increase in hiring since February.

Last week, Federal Reserve Chairman Jerome Powell reiterated that the central bank could start tapering asset purchases but also said the labor market still needs help to fully recover.

Here’s where US indexes stood at the 4 p.m. market close on Wednesday:

Read more: The ‘Wolf of All Streets’ trader shares the 6 altcoins he’s bullishly ‘hodling’, and why investing in crypto now is the largest upside opportunity that our generation will see

The benchmark S&P 500 on Tuesday ended higher for the seventh consecutive month, the longest winning streak since January 2018.

The ADP report was released before Friday’s release of August jobs data from the Labor Department.

“The private payrolls numbers have been all over the map during the pandemic, and often not the strongest indicator of how the rest of the jobs report will play out,” Mike Loewengart, managing director of investment strategy at E-Trade Financial, told Insider in a note. “But with so much pressure on improvement on the labor market front coming from the Fed, this could send a signal that jobs growth is stagnating. That’s likely a good thing for the markets though as it means easy money policy continues.”

Gold rose as much as 0.4% to $1,820.13 per ounce.

West Texas Intermediate crude fell as much as 2% to $67.12 per barrel.

Bitcoin rose as much as 4.5% to $49,107.95.

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