(Reuters) – Wall Street’s main indexes tumbled on Monday, as concerns about the pace of a global recovery spurred a selloff across sectors at the start of a week in which the Federal Reserve will decide on potentially tapering its pandemic-era stimulus.

U.S. Treasury yields fell also as concerns about Evergrande, a Chinese property developer, appeared to have an impact on the wider market. Commodities were falling and investors flocking towards bonds for the safety they offer.

STORY: () [US/]

MARKET REACTION:

* STOCKS: Dow down 2.11%, down 2.13%, Nasdaq down 2.60%

* BONDS: Benchmark 10-year notes last rose 20/32 in price to yield 1.3023%, from 1.37% late on Friday. [US/]

* FOREX: The rose 0.055%, with the euro down 0.01% to $1.1724. [FRX/]

* : The VIX was up 29% at 26.87

COMMENTS:

PAUL NOLTE, PORTFOLIO MANAGER, KINGSVIEW ASSET MANAGEMENT, CHICAGO

“We’ve been calling for a correction for forever and we may finally be getting it. We’ve been waiting for a genesis and we might be seeing it coming from China.

“But we’re not seeing the movement to safe havens that you’d expect if this were a more concerning decline. Bonds are rallying a little bit, Dollar’s rallying a little bit, but we’re not seeing that huge movement.

“The Fed meeting this week will be a big deal, but outside of that, there’s the politics of the debt ceiling. There’s plenty of stuff out there, but it’s all been out there for six months.”

JAKE DOLLARHIDE, CEO, LONGBOW ASSET MANAGEMENT, TULSA, OKLAHOMA

“We’re due for a correction. It’s like the market is addicted to buying the dip. Every time it goes down five or six percent, all this liquidity jumps in to prop us back up.”

“Today, the market is down because of the Chinese real estate contagion threat, despite a lot of good headlines recently on COVID. The market is done trading on COVID, it wants to trade on something else, it’s looking for the next big thing.”

JIM VOGEL, INTEREST RATE STRATEGIST, FHN FINANCIAL, MEMPHIS

“The long end of the curve has been flatter over the last couple of weeks, which implies a certain degree of hedging already in front of equity or other risk concerns in other asset classes. Given the amount of risk protection required, there’s little room to add to this position.

“It’s not that people (bond traders) are shrugging this off. They are somewhat prepared in Treasuries to sell off, but not necessarily of such size. There are a lot of people who don’t want to purchase in front of Wednesday’s FOMC. This seems like a very low-payoff event. If you consider what could cause rates to drop fundamentally from here, that would be a fairly dovish Fed. We haven’t seen such guidance from any speakers since the blackout began.

“There’s possible upside in buying today, but all things considered, particularly if China comes back and does anything to support its markets overnight, then if you’ve got some downside risk to committing here today.”