Friday, Aug. 21, 2015|10:03 a.m.
NEW YORK (AP)– U.S. stocks are dropping dramatically for a 2nd day following a sell-off in significant indexes all over the world on growing evidence that China’s economy is slowing. The brand-new bout of international selling followed news of a survey showing manufacturers on the mainland remain to agreement. Financiers are likewise stressed over more chaos in Greece after the resignation of its prime minister.
KEEPING SCORE: The Dow Jones industrial average fell 296 points, or 1.7 percent, to 16,694 as of 12:23 p.m. Eastern time. The Requirement & & Poor’s 500 index dropped 35 points, or 1.7 percent, to 2,000. The Nasdaq skidded 93 points, or 1.9 percent, to 4,784.
TECH CORRECTION?: The Nasdaq is now about 8 percent off its recent high of 5,218.86 on July 20. That puts it within shooting variety of exactly what traders call a “correction,” or a fall from a high of more 10 percent.
BROAD DROP: All 10 sectors of the S&P 500 fell, led by a 1.9 drop in information technology shares.
CHINA JITTERS: In China, a preliminary version of a gauge of company activity, the Caixin buying supervisors’ index, was up to an all of a sudden low 47.1 points. Numbers listed below 50 reveal a contraction.
The devaluation of the yuan recently has shaken confidence on the planet’s No. 2 economy. The Shanghai Composite index suffered another steep drop of 4.3 percent on Friday.
THE QUOTE: “China has been on a mission to keep up the illusion of a progressive slowdown, however dealers aren’t buying it any longer,” said David Madden, market expert at IG.
OH, DEERE: Deere & & Co. fell $6.01, or 6 percent, to $84.63 after it cut its full-year outlook. It said it anticipates the weak agriculture and energy sectors to continue dragging down devices sales.
EUROPE DOWN: In Europe, France’s CAC-40 declined 3.2 percent while Germany’s DAX fell 2.9 percent. In Britain, the FTSE 100 index was down 2.8 percent.
GREECE BACK, TOO: Greece looks movinged towards another election on Sept. 20 supplied opposition parties cannot form a new government. Prime Minister Alexis Tsipras is wishing to profit from his individual popularity in the election as he looks for a brand-new mandate to govern. The country previously this week got its hands on the first tranche of cash from its 3rd worldwide bailout.
EXPERT TAKE: “While the decision to have a brand-new vote is likely to increase political unpredictability in the short-term … the hope is that the more dysfunctional members of his government will get pressed to the sidelines,” said Michael Hewson, chief market analyst at CMC Markets.
ASIA’S DAY: Tokyo’s Nikkei 225 was off 3 percent, Seoul’s Kospi shed 2 percent and Hong Kong’s Hang Seng fell 1.5 percent.
ENERGY: A stagnation in China has the potential to significantly crimp demand for oil. The benchmark U.S. crude plunged $1.25. or 3 percent, to $40.07 per barrel on the New York Mercantile Exchange. It has now remained in decline for 8 successive weeks, the longest streak since 1986. Brent crude, which is made use of to price worldwide oils, fell $1.36 to $45.26 in London.
CURRENCY: The euro increased 0.4 percent to $1.1355. The dollar was also 0.6 percent lower at 122.15 yen.