US stock slip as traders closely watch Evergrande drama and debt ceiling talks

New York Stock Exchange, Aug. 19, 2021 Wang Ying/Xinhua via Getty Images
Stocks in the US fell as Evergrande's saga and debt crisis raged.

The OPEC+ meeting was scheduled for Monday, and oil prices were volatile before then.

Bitcoin traded flat, while gold edged lower.

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US stocks fell Monday as investors focused on developments in the Evergrande saga. Trading of Evergrande's stock was suspended in Hong Kong. We searched for signs that Congress might be able to avert the debt ceiling crisis this month.

After posting its largest weekly loss since February, the benchmark S&P 500 lost a significant amount. After spiking almost 500 points on Friday, the Dow Jones Industrial Average also fell.

Here are the US indexes at 9:30 AM ET on Monday.

In the midst of an announcement regarding a "major transaction," trading in Evergrande shares and its property management unit was suspended Monday. Trading was halted Monday as Evergrande's debt payments loomed. There were no indications that the world’s largest company is insolvent had fulfilled two obligations to foreign investors.

According to Chinese media, Evergrande will sell 51% of its property management unit to Hopson Development to raise $5.1 billion.

The US Republicans blocked Democrats' attempts to renew the country’s ability to pay its debts. To avoid a potentially devastating economic hit, Congress has only 16 days to raise the debt ceiling or suspend it.

In default would cause trust in the dollar to erode and interest rates to rise, which would raise mortgage, car loan and credit card costs. S&P stated that it would reduce its rating to the lowest possible rank of D.

Pestrichelli stated in a Monday note that investors should be prepared for increased volatility in the stock market throughout October. This is because concerns about inflation, supply chain issues and Fed policy remain.

He said, "The next hurdle to the stock market's success is Friday's jobs data, which will have implications for the inflation story as well as the trajectory of Federal Reserve Policy."

Tesla shares rose almost 3% premarket following its third quarter deliveries that surpassed analyst expectations, despite the continuing shortage of chips in the industry.

Compound, a global decentralized financial platform, was able to see $160 million worth cryptocurrency at risk following a network upgrade that went wrong.

Bitcoin trades flat at $47,826. That's 0.63% less than the previous day.

Although oil prices fluctuated, they were slightly higher before the OPEC+ meeting, which could decide whether production targets will adjust to ease market volatility. The committee members will discuss whether to raise production targets slowly or open the taps faster to lower prices.

West Texas Intermediate crude oil rose 0.21% to $76.04 a barrel. Brent crude oil, the international benchmark for oil, increased 0.34% to $79.55 per barrel.

Bank of America stated last week that Brent crude oil could reach $100 per barrel for the first-time since 2014.

Gold fell 0.33% to $1,757.43 an ounce.