Wall St. ends sharply lower in broad sell-off ahead of US Fed policy meet



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Wall St. ends sharply lower in broad sell-off ahead of US Fed policy meet

On Monday, all three key indices of Wall St. had been hit with hefty whiplashes as frets of a broader market reaction to a likely collapse in China’s real-estate giant Evergrande had galvanized a flight-to-safety response among investors’ across the globe, while a US Federal Reserve policy meet scheduled to take place this week had added to further worries.

In point of fact, in the day’s Wall Street had been stabbed with a doubled whammy of a potential fiscal repercussions of a collapse in Evergrande, China’s second-largest real-estate developer which owes over $300 billion worth of properties to-date mostly to retail buyers apart from bonds and other financial assets, alongside worries that the US Fed would taper its $120 billion monthly bond repurchase program before end-2021 amid soaring inflation indicators.

Growth stocks plunged by the most with tech-heavy Nasdaq fell to its lowest in more than a month, while mega-cap tech conglomerates like of Microsoft, Alphabet Inc., Amazon.com Inc., Facebook Inc., Apple Inc alongside Tesla Inc had been among the hardest hits.

All eleven sub-indices of S&P 500, in tandem, had wrapped up the session in red-inks with economically sensitive energy stocks having been hammered by the most.

Wall St. falls sharply on Fed policy meet, Evergrande collapse

Citing statistics, in the day’s Wall St.

wind-down, trade-sensitive Dow faltered 1.79 per cent to 33,964.66 and benchmark S&P 500 shrugged off as much as 1.70 per cent to 4,357.71, while tech-heavy Nasdaq lost 2.17 per cent to 14,718.02, leading the tally of declines.

Meanwhile, citing a growing investors’ uncertainty adding holocausts into the Wall Street, a senior global market strategist Wells Fargo Investment Institute, Sameer Samana, said, “You kind of knew that when there was something that caught markets off guard, that it was going to lead to probably a bigger sell-off and you didn't know what the reason would be”.