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Dow Drops More Than 500 Points Amid Fed, Delta Variant Jitters

The S&P 500 fell 1.5 percent and Nasdaq sank 1.8 percent

On Monday, benchmark U.S. stock indexes opened sharply lower as investors assessed a bevy of risks, including a possible shift in Federal Reserve guidance this week that could hurt corporate profits.

The Dow Jones Industrial Average dropped more than 500 points, or 1.5 percent, shortly after the start of trade, while the broader S&P 500 fell 1.5 percent and technology-heavy Nasdaq sank 1.8 percent. The decline extends a slide for Wall Street this month, with the S&P 500 losing nearly 1 percent last week.

Although September is historically a weak month for stocks, a range of factors is weighing on market sentiment. Investors remain concerned that the latest COVID-19 wave could slow economic growth, while also keeping a close eye a push by congressional Democrats to raise taxes on wealthy Americans and large corporations. Fear is also mounting that Evergrande Group, a major Chinese property developer, could default on its debt and trigger a financial crisis.

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