Wall Street opened sharply lower on Monday with the Dow Jones losing more than a 1,000 points following a more-than 8% drop in Chinese shares and a selloff in oil and other commodities.
The Dow has never lost more than 800 points in a single day.
Futures on the Nasdaq, S&P 500 and Dow were halted briefly before the market opened after hitting a circuit breaker, a step taken by exchanges to reduce volatility and give investors time to assess information.
With Monday’s selloff, the S&P 500 index and the Nasdaq Composite slipped into correction mode, joining the Dow, which slid into correction territory on Friday.
An index is considered to be in correction when it falls 10% from its 52-week high.
The New York Stock Exchange invoked a rule saying market makers don’t have to disseminate price indications before the opening bell in an effort to make it easier and faster to open stocks on a volatile trading day.
All 10 major S&P 500 sectors fell, with health and technology falling more than 6%. All stocks in the Dow were in the red.
The S&P 500 index showed 132 new 52-week lows and just two highs, while the Nasdaq recorded 504 new lows and two new highs.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)