Wall Street plunged on Monday as fear of contagion from a potential collapse of China’s Evergrande prompted a broad sell-off and sent investors fleeing equities for safety.
The Nasdaq fell to its lowest level in about a month, and Microsoft Corp, Alphabet Inc, Amazon.com Inc , Apple Inc, Facebook Inc and Tesla Inc were among the biggest drags on the index as well as the S&P 500.
All 11 major S&P 500 sectors were lower, with economically sensitive groups like energy down the most.
Unofficially, the Dow Jones Industrial Average fell 620.22 points, or 1.79%, to 33,964.66, the S&P 500 lost 75.28 points, or 1.70%, to 4,357.71 and the Nasdaq Composite dropped 325.95 points, or 2.17%, to 14,718.02.
The S&P 500 is down sharply from its intra-day record high hit on Sept. 2 and is on track to snap a seven-month winning streak.
Strategists at Morgan Stanley said they expected a 10% correction in the S&P 500 as the Fed starts to unwind its monetary support, adding that signs of stalling economic growth could deepen it to 20%.