Shares of banks and other financial institutions ticked up as traders brushed off reports that property development giant China Evergrande was close to a default event.

Investors who own Evergrande's U.S.-dollar bonds hadn't received an interest payment by a Thursday deadline, raising concerns about a potential default. "Evergrande is not Lehman Brothers," said strategists at brokerage Bank of America Global Research, in a note to clients.

"Chinese credit markets are not like the U.S. And Chinese policy can turn on a dime." Still, the BofA strategists said China's recent regulatory travails, which include attempts to rein in property developers and tech companies, could have a negative impact on markets.

"China is attempting to implement several structural changes, creating downside risks to trend growth," said the BofA strategists.

Swedish buyout giant EQT is under investigation by Sweden's regulator for potential market abuse over the timing of its disclosure that it allowed its partners to sell about $2.7 billion of stock a year ahead of schedule.

The Federal Reserve's plans to taper bond purchases drove the yield on the 10-year Treasury note to its largest gain since March, and it closed at 1.459%, the highest since July. Fed Bank of Cleveland leader Loretta Mester said in a virtual appearance that "in my view, the economy has met those (substantial further progress) conditions, and I support starting to dial back our purchases in November and concluding them over the first half of next year." Meanwhile, Kansas City Fed leader Esther George said in a separate speech text that "the criteria for substantial further progress have been met," citing the growth of the labor market.


 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

09-24-21 1714ET