U.S. Stock Markets Tumble By Nearly 3 Percent As China Worries Renew
Both the Nasdaq and the Dow Jones index were hit by losses Tuesday, as concerns again rose about China's economy. The Dow is now down nearly 10 percent in 2015, after falling 469 points Tuesday to close at 16,058.
Markets in Europe and Asia also suffered, after renewed worries about a slowdown in China, the world's second-largest economy.
"The latest evidence is China's purchasing manager's index," NPR's John Ydstie reports, "which shows the country's manufacturing sector contracting."
John says, "Another jolt for the market was a comment from the head of the IMF that growth in Asia could slow even more. The irony is that while U.S. stocks are tanking, estimates of U.S. growth have been upgraded, U.S. auto sales are strong and consumer spending is rising."
For U.S. stocks, today's losses were spread around many sectors. Bloomberg News reports:
"Energy shares fell for the first time in five sessions as oil retreated after the commodity's strongest three-day rally since 1990. Exxon Mobil Corp. and ConocoPhillips slumped more than 2.8 percent. Banks were among the hardest hit, with Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. losing at least 4.1 percent. Apple Inc. and Microsoft Corp. sank more than 3.9 percent to drag down technology shares. Copper producer Freeport-McMoRan Inc. dropped 8.2 percent."
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