On Monday, banking stocks saw a steep decline in the face of the unfolding Evergrande debt crisis, leading to a rough start for the week on Wall Street. As investors braced for more uncertainty in the global market, tech companies like GitLab, Tesla, and Charles Schwab came into focus, along with the upcoming CPI inflation report.
The Dow Jones futures fell 0.3%, with the S&P 500 and Nasdaq also seeing declines of around 0.3% and 0.5%, respectively. In the banking sector, Wells Fargo, Goldman Sachs, and JPMorgan Chase all fell more than 2%, with Bank of America, Citigroup, and Morgan Stanley all down more than 1%.
The Evergrande debt crisis, which has been unfolding in China, has been causing concern among global investors. Evergrande is one of China’s largest property developers, and it is struggling to meet its debt obligations. If the company were to default on its loans, it could have far-reaching consequences for the Chinese economy and beyond.
Tech companies like GitLab, Tesla, and Charles Schwab were also in the spotlight on Monday. GitLab, a software development company, went public via a direct listing, with shares opening at $77.00, up from the reference price of $42.00. Tesla saw a decline of around 2.6% after the company was downgraded by New Street Research. Charles Schwab, a financial services company, announced plans to buy the investment firm, Wasmer Schroeder & Company.
Investors are also bracing for the upcoming CPI inflation report, which will be released on Tuesday. The report will give an indication of how much prices are rising in the U.S. economy. Inflation has been a major concern for investors, as it can erode the value of investments and lead to higher interest rates.
Overall, the market is facing a great deal of uncertainty as investors wait to see how the Evergrande debt crisis will unfold and how it will impact the global economy. Tech companies, particularly those in the software and financial services sectors, may continue to be in focus in the coming weeks as investors seek out opportunities amid the uncertainty.