Monday was a rough day for U.S. markets, but it appears this morning as though that may be just the start of a disastrous week for equities.
Tuesday saw a global rout on stocks around the world, as the eight largest indexes in Europe all dropped at least 2 percent. But it was nothing compared to China, where the Shanghai Composite Index tanked by 5.3 percent. The sell-off came after banks toughened collateral rules for short-term loans, indicating the Chinese economy is slowing at a faster pace than expected.
Within 90 minutes of the opening bell, U.S. markets clearly reflected the global fears:
Dow Jones Industrial Average: 16658.85 (-1.08%)
S&P 500: 2039.68 (-1.00%)
NASDAQ: 4697.14 (-0.92%)
And it’s not over yet. Concerns continued over dropping oil prices, plus statements on federal budget and consumer confidence numbers are due later this week. It’s shaping up to be an interesting holiday season on Wall Street.