Dow futures drop 300 points as China property fears grow

How are banal futures trading?

• Dow Jones Industrial Average futures YM00, -1.24% dropped astir 400 points, oregon 1.1%, to 34,064
• S&P 500 futures ES00, -0.93% fell 40 points, oregon 0.9%, to 4,382
• Nasdaq-100 futures NQ00, -0.71% dropped 107 points, oregon 0.7%, to 15,217

On Friday, the Dow Jones Industrial Average DJIA, -0.48% fell 166 points, oregon 0.48%, to 34585, the S&P 500 SPX, -0.91% declined 41 points, oregon 0.91%, to 4433, and the Nasdaq Composite COMP, -0.91% dropped 138 points, oregon 0.91%, to 15044.

For the week, the Dow saw its 3rd consecutive play decline, losing 0.1% and booking its longest play losing streak since the 4 weeks ending Sept. 25, 2020, according to Dow Jones Market Data. The S&P 500 fell 0.6% successful a 2nd consecutive week of losses, portion the Nasdaq Composite mislaid 0.5%, besides booking 2 consecutive play falls, according to FactSet.

What’s driving the market?

China’s spot marketplace suffered dense losses Monday, with shares of China Evergrande 3333, -12.20% falling 13% successful Hong Kong.

The 8.25% Evergrande enslaved that has involvement payments owed this week was trading astatine astir 29 cents to the dollar connected Monday, according to Reuters.

Markets were closed successful mainland China for a holiday, but the Hang Seng HSI, -3.35% dropped implicit 3%.

That’s arsenic Wall Street investors are poised to prime up wherever they near disconnected past week — connected a weaker footing.  

“The dip is owed to a assortment of causes, including fading net estimates, uncertainty related to shifting monetary policy, and instability successful the world’s 2nd largest system arsenic a effect of escalating crackdowns,” said Naeem Aslam, main marketplace expert astatine AvaTrade, successful a enactment to clients.

Markets volition beryllium intimately watching for immoderate speech of tapering astatine the Fed’s two-day argumentation meeting that begins Sept. 21. The cardinal bank’s ultra-easy argumentation stance, enactment successful spot much than a twelvemonth agone to assistance the system header with the pandemic, looks untenable to immoderate fixed spikes successful inflation.

The system has been giving disconnected mixed signals, though, amid rising cases of coronavirus owed to the delta variant. Friday’s losses for Wall Street came arsenic a speechmaking connected user sentiment held adjacent to a astir 10-year low.