By Sagarika Jaisinghani

(Reuters) – U.S. stock index futures fell 1% on Monday, as investors worried about rising COVID-19 cases and the pace of economic growth at the start of a week in which the Federal Reserve will decide on potentially tapering its massive pandemic-era stimulus.

The blue-chip Dow Index futures, which mostly consists of stocks that are dependent on an economic recovery were 1.5% lower by 04:31 AM. ET.

Wall Street’s major indexes were hit this month by concerns about higher corporate taxes. They have ignored signs that inflation may have reached its peak. The benchmark is on track to snap a seven-month gaining streak.

On Wednesday, all eyes will be on Fed’s policy meeting. The central bank is expected lay the foundation for tapering. However, the consensus suggests that an announcement may be postponed until November or December.

Charalambos pissouros (head of research, JFD Group) stated that any indications point to a November taper decision might support the U.S.dollar further and maybe extend the most recent decline in equities.

Market participants might also want to know if this will also lead to earlier rate increases.

Recent turmoil in global equity markets has also resulted from the deepening problems at China Evergrande – the largest property developer worldwide.

The shares of the firm plunged 15% Monday due to worries over its ability pay a portion of its debt, which totals $305 billion.

In the United States, were down 1.23%, and were down 1.05%.

Economically sensitive industrials Boeing (NYSE:) Co and Caterpillar Inc (NYSE:) slipped 1.7% and 1.9%, respectively.

Banking stocks including Morgan Stanley (NYSE:), JPMorgan Chase & Co (NYSE:) and Bank of America Corp (NYSE:) fell between 1.8% and 2.7% in premarket trading, tracking U.S. Treasury yields. [US/]

A slate of U.S.-listed Chinese stocks including Weibo (NASDAQ:) Corp, Bilibili (NASDAQ:) Inc, Vipshop (NYSE:) Holdings Ltd and Pinduoduo (NASDAQ:) Inc shed between 3.4% and 5.4% amid a widening regulatory crackdown in China.

The smallest droppers were heavyweight tech-related stocks. These stocks have been known to do better in times of economic uncertainty.