Are US Stock Markets Heading Towards A Major Crash
Sep, 02nd 03:32
U.S. stocks suffered their third-worst loss of the year on Tuesday as part of a global rout sparked by a new round of weak Chinese economic data. Yesterday’s slump has raised questions if the US stocks are poised for a major crash amid worsening China economy and US rate hike extectations.
China’s official manufacturing purchasing managers index fell to a three-year low, triggering a wide selloff in stocks across Asia and Europe that then spread to the U.S.
The S&P 500 sank 58.33 points, or 3%, to 1,913, with all of its 10 sectors in the red. The Dow Jones Industrial Average DJIA, -2.84% lost 469.68 points, or 2.8%, to 16,058.35. All 30 of its components closed lower.
The Nasdaq Composite COMP, -2.94% slumped 140.40 points, or 2.9%, to 4,636.10, falling into negative territory for the year.
Tuesday marked the third-biggest daily drop of the year for the S&P 500 and the Dow, while for the Nasdaq, it is the third worst by percentage decline.