US stocks continue to slump as Chinese shares plunge
Stocks fell broadly around the globe on Monday, a reaction to a steep drop in the Chinese market overnight.
The losses follow declines in US markets last week, when the three major indexes fell between 2% to 3% each. Global economic growth concerns remain the main focus for investors.
Faced with a drop in stock prices in Asia, Europe and the US, investors moved into traditional safe havens. The yield on the 10-year US Treasury note fell to 2.22% from 2.26% on Friday. The price of gold rose 1%. Dividend-heavy stocks, like utilities, also gained.
"There remain very few buyers out there and there are some growing concerns that we're looking at a slowdown in global economic growth," said Sean Lynch, co-head of global equity strategy with the Wells Fargo Investment Institute.
The Dow Jones industrial average lost 127.94 points, or 0.7%, to 17,440.59. The Standard & Poor's 500 index lost 12.01 points, or 0.6%, to 2,067.64 and the Nasdaq composite lost 48.85 points, or 1%t, to 5,039.78.
It was the fifth straight loss for the US market.