Dow drops more than 500 points amid Fed, Delta variant jitters
CBSN
Benchmark U.S. stock indexes opened sharply lower on Monday as investors assessed a bevy of risks, including a possible shift in Federal Reserve guidance this week that could hurt corporate profits.
The Dow Jones Industrial Average dropped more than 500 points, or 1.5%, shortly after the start of trade, while the broader S&P 500 fell 1.5% and technology-heavy Nasdaq sank 1.8%. The decline extends a slide for Wall Street this month, with the S&P 500 losing nearly 1% last week.
Although September is historically a weak month for stocks, a range of factors is weighing on market sentiment. Investors remain concerned that the latest COVID-19 wave could slow economic growth, while also keeping a close eye a push by congressional Democrats to raise taxes on wealthy Americans and on big corporations. Fear is also mounting that Evergrande Group, a major Chinese property developer, could default on its debt and trigger a financial crisis.
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