The Monday mayhem began moments after the market opened at 9:30 a.m. The Dow Jones Industrial Average was off 1,000 points, or six-percent.
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In Europe, the Stoxx 600 Index ended the day with a 5.3% drop from the previous close.
Treasury prices surged as investors rushed to haven assets, pushing the yield on the 10-year note down to 1.960% from 2.052% on Friday.
China’s dimming outlook is drawing calls for more economic stimulus from Beijing, though earlier government efforts to stop the sell-off in stocks appear to have done little to stabilize markets. China’s main index sank 8.5 percent today, amid fears over the health of the world’s second- largest economy.
But the slump – part of a global wave of selling triggered by the slowdown in China – reflected uncertainty among investors over where…
Two positive impacts, Collins said, are cheaper Chinese-made goods for U.S. consumers – and just in time for the holiday shopping season – and the probability of lower fuel and other energy prices for the remainder of 2015.
“This is faster money… as our markets have traded lower in sympathy with foreign markets, they’ve been forced to sell”, he added.
Wall Street pared losses, after plunging in the first 10 minutes of trading after Chinese stocks plummeted as investors rushed to the sidelines.
The Dow fell 588.47 points, or 3.6 percent, to 15,871.28.
Technically, it isn’t a correction yet for the S&P500 index since it is only about 7.5% down from its May 20 peak of 2134. And, coming on the heels of last week’s sell-off, August is on track to be the worst month for stocks since the height of the financial panic in 2008. On Monday, U.S. markets fell sharply in early trading after Chinese shares dropped 8.4 percent.
The Dow Jones industrial average and the Nasdaq 100 slid into a correction zone on Friday.
In Asian markets, Japan’s Nikkei Stock Average rose 0.49 percent, Hong Kong’s Hang Seng Index declined 0.74 percent, China’s Shanghai Composite Index climbed 0.71 percent and India’s BSE Sensex fell 0.67 percent.
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Traders work on the floor at the New York Stock Exchange in New York, Wednesday, July 8, 2015. Some analysts say they see huge opportunities for bargains in the latest plunge in prices, but overall sentiment remains gloomy. Brent crude, a benchmark for global oils used by many U.S. refineries, dipped 11 cents to $48.70 per barrel.
