Key indices at Wall Street end sharply lower
On Wall Street, key indices ended sharply lower yesterday, as risk aversion sentiment gripped investors on concerns over the pace of global growth and a possible spillover from China Evergrande’s troubles, ahead of the Federal Reserve’s policy meeting later this week.
All the 11 major S&P sectors declined. Economy-sensitive industrials, financials and energy dropped between 1.9 percent and 4 percent.
The banking sub-index shed 3.9 percent, tracking US Treasury yields as worries about the default of Evergrande appeared to affect the broader market, with commodities slipping and investors flocking to the perceived safety of bonds. .
All eyes be on the Fed’s policy meeting tomorrow, where the central bank is expected to lay the groundwork for a tapering, although the consensus is for an actual announcement to be delayed until the November or December meetings.
So, the Dow Jones Industrial Average slumped 614 points, or 1.8 percent, to close at 33,970.
The S&P 500 lost 75 points, or 1.7 percent, to end at 4,358. And the Nasdaq Composite plunged 330 points, or 2.2 percent, to 14,714.