U.S. stocks plunged deep into the red on Monday.
 | MON, SEP 20, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 142.94 | -3.12 | -2.14% | | MSFT | 294.30 | -5.57 | -1.86% | | INTC | 52.98 | -1.28 | -2.36% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | F | 12.82 | -0.73 | -5.39% | | AAPL | 142.94 | -3.12 | -2.14% | | BAC | 39.11 | -1.39 | -3.43% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 142.94 | -3.12 | -2.14% | | AMD | 101.55 | -2.33 | -2.24% | | MSFT | 294.30 | -5.57 | -1.86% | |
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U.S. stocks plunged deep into the red on Monday with cryptocurrencies following along for the ride and testing bitcoin's status as a safe-haven asset.
The sell-off was primarily driven by concerns about Evergrande, a large Chinese property development company with crushing debt that's been well documented. Investors began moving back into cash as they grappled with the possibility the company could default on loan repayments, an event that could have wide ranging effects beyond the Chinese markets.
The Dow closed over 600 points lower on Monday as investors were already in the throes of a September slump expected to get deeper through October. Some analysts say the news from China only added to a slew of ongoing concerns about Covid-19, the expected tapering by the Federal Reserve, the government spending bill and the debt ceiling. Truist's Keith Lerner said Evergrande is providing investors a gut check.
"This is an event that will lead to market turbulence," he said. "Ultimately, we don't see this as a systemic risk or changing the market's primary uptrend. The unwinding of Evergrande will be sloppy and cause disruptions, but we expect the Chinese government will manage this default to avoid a hard landing, and foreign investors will be asked to accept a haircut and maturity extension on their bond holdings."
 Cryptocurrencies took a dive as well, with bitcoin ending the day about 7% lower. The slide resurfaced the debate about whether bitcoin can or should serve as a safe-haven asset. In more recent years, bitcoin has shown more of a tendency to dip with the broader markets. To Jim Paulsen, chief investment strategist at the Leuthold Group, it's clear bitcoin is not that safe-haven asset, though he maintained it also has little to no correlation to stocks and he still sees the cryptocurrency as a good portfolio diversifier.
Crypto related equities, often tied closely to cryptocurrency prices, fell too. Coinbase and Microstrategy fell 3.5% and 4.2%, respectively.
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