Stocks Open the Week With a Tumble

U.S. stocks had their biggest drop since May as traders worried about potential ripple effects if a debt-laden Chinese real estate company defaults and the likelihood that the Federal Reserve will signal that it will pull back its supports for markets and the economy. The S&P 500 fell 1.7% Monday. It had been down as much as 2.9% earlier. Hong Kong’s main index dropped 3.3%, its biggest loss since July, over worries that the huge Chinese developer Evergrande could collapse. The yield on the 10-year Treasury note dropped to 1.31% as investors turned to lower-risk assets.


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