AMC and GameStop shares fell as much as 12% and 9%, as the entire US market turned bearish today. Evergrande saga has suddenly turned into a global crisis as investors started a massive sell-off. All the three major indices were down more than 2.5% with Russel 2000 down more than 3.6%.
Evergrande reportedly faces $83.5 million in interest payments due on Thursday; raising concerns on a liquidity crisis among all Chinese and Hong Kong property companies. China’s wide-scale regulatory crackdown including tech giant Alibaba Group has started to question investor confidence. The global stock selloff was accelerated by falling iron ore prices because of China’s restrictions on industrial activity.
AMC and GameStop are seeing the deep end of the market sell-off. On Saturday, AMC’s CEO announced that, 40 AMC theatres will be showing pro football with free admissions.
Although there’s a global sell off, strategists believe that this is only temporary; while there are some who think, this is the beginning of a stock market crash. Either way, only time will tell which side the market will take.