Dow dives 450 points, sinks below 17,000
Talk about a scary start to 2016.
Fears of a crash landing in China's economy sent stocks diving around the world on Monday, the first trading day of the year. The global selloff was caused by a new report that showed China's manufacturing sector contracted at the end of 2015. Stocks in China fell so badly that trading was halted for the first time ever.
The Dow declined 450 points and fell below the 17,000 level for the first time since October. The S&P 500 lost 2.5% and the Nasdaq dropped 3%.
"It seems like fear woke up early in 2016 and hope is basically sleeping in," said David Kelly, chief global strategist at JPMorgan Funds.
The retreat comes after the S&P 500 fell 0.7% in 2014, its worst year since the 2008 financial crisis.
Monday's wave of selling began in Asia. Trading in China was stopped prematurely after circuit breakers were triggered during their first day since they were implemented. Circuit breakers act as a kind of emergency brake to halt trading during times of extreme volatility.