Shanghai Stocks Suffer Worst Drop Since 2020

Shanghai stocks experienced a dramatic 6.6% drop, the worst single-day decline since February 2020, fueled by investor disappointment over the Chinese government's lack of substantial economic stimulus amid slowing growth. This decline was mirrored in Hong Kong, where the Hang Seng Index fell 9.4%, marking its worst day since the 2008 financial crisis. In contrast, U.S. markets showed resilience, with the S&P 500 rising 0.6%, supported by a decrease in oil prices and steady bond yields. Despite the turbulence in Chinese markets, Wall Street indices held near record highs, with strong performances from major tech stocks. Analysts noted that the recent volatility in China has led to revised growth expectations, which in turn dampened global market sentiment. Oil prices eased, with Brent crude falling 4.6% to $77.18, alleviating some pressure on U.S. stocks amidst broader economic concerns.