Why GameStop Stock Slumped Today
Shares of GameStop (NYSE: GME) were down 6.2% on Monday after the broad U.S. stock indexes took a tumble in reaction to the China Evergrande Group (OTC: EGRNF) situation this weekend. The meme stock, which is now up 922% year to date, actually had some positive news announced today, but that still didn't prevent GameStop from selling off in line with the indexes.
Evergrande is a large property developer from China. Investors have become increasingly worried about the company's solvency because of its inability to pay the interest on its debt. The company has so much debt that if it defaults, it could seriously affect the Chinese economy. These concerns have trickled over to Western markets today, and are likely why U.S. stocks are down 2% to 3% today.
Image source: Getty Images.
Source Fool.com
