Global stocks sink after China index dives 7 percent
Posted January 04, 2016 6:00 am
NEW YORK (AP) - U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe.
The Dow Jones industrial average sank 347 points, or 2 percent, to 17,078 as of 9:35 a.m. Eastern time Monday.
The Standard & Poor's 500 index lost 37 points, or 1.8 percent, to 2,006. The Nasdaq composite gave up 112 points, or 2.2 percent, to 4,895.
Overseas markets fell even more. China's main index plunged nearly 7 percent, triggering an emergency trading suspension. The drop was caused by weak Chinese manufacturing data and escalating tensions in the Middle East.
European indexes fell between 2 and 3 percent.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.23 percent.
An investor places her leg on a bench near an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)
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A woman's handbag and bottles of Chinese tea are placed on a booth with an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)
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A man takes a nap near at an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)
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A woman walks past an electronic board displaying stock prices as she leaves a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)
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Women chat at each other as an investor checks on stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai's stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. (AP Photo/Andy Wong)
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A currency trader walks by the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room in Seoul, South Korea, Monday, Jan. 4, 2016. Asian stock markets started 2016 on a weak note Monday as poor manufacturing data from the world's second-largest economy and escalating tensions in the Middle East weighed on investor sentiment. (AP Photo/Lee Jin-man)
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A currency trader walks by the screens showing the foreign exchange rates between the U.S. dollar and South Korean Won at the foreign exchange dealing room in Seoul, South Korea, Monday, Jan. 4, 2016. (AP Photo/Lee Jin-man)
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A currency trader walks by the screens showing the foreign exchange rates, left, and the Korea Composite Stock Price Index (KOSPI), left, at the foreign exchange dealing room in Seoul, South Korea, Monday, Jan. 4, 2016. (AP Photo/Lee Jin-man)
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A currency trader looks at the computer monitors at the foreign exchange dealing room in Seoul, South Korea, Monday, Jan. 4, 2016. Asian stock markets started 2016 on a weak note Monday as poor manufacturing data from the world's second-largest economy and escalating tensions in the Middle East weighed on investor sentiment. (AP Photo/Lee Jin-man)
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Guests watch an electronic stock board showing the first day trading of the year figures during a ceremony marking the start of this year's trading in Tokyo, Monday, Jan. 4, 2016. (AP Photo/Eugene Hoshiko)
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Guests watch an electronic stock board showing the first day trading of the year figures during a ceremony marking the start of this year's trading in Tokyo, Monday, Jan. 4, 2016. (AP Photo/Eugene Hoshiko)
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South Korean Chairman of the Financial Services Commission Yim Jong-yong, second from right, is seated with other participants during the opening of the 2016 trading year at the Korea Exchange in Seoul, South Korea, Monday, Jan. 4, 2016. The Korea Composite Stock Price Index (KOSPI) opened at 1,954.47. (AP Photo/Lee Jin-man)
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People walk past an electronic stock board of a securities firm on the first business day of the year in Tokyo, Monday, Jan. 4, 2016. Asian stock markets started 2016 on a weak note Monday as poor manufacturing data from the world's second-largest economy and escalating tensions in the Middle East weighed on investor sentiment. (AP Photo/Eugene Hoshiko)
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Stocks traders blow their horns during the ceremonial ringing-of-the-bell to usher the start of trading for the year at the Philippine Stock Exchange at the financial district of Makati city, east of Manila, Philippines, Monday, Jan. 4, 2016. (AP Photo/Bullit Marquez)
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A trader blows a horn during the ceremonial ringing-of-the-bell to usher the start of trading for the new year at the Philippine Stock Exchange at the financial district in Makati city, east of Manila, Philippines, Monday, Jan. 4, 2016. (AP Photo/Bullit Marquez)
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