U.S. stocks were under pressure in midday trading Monday after China’s benchmark stock market tumbled 8.5 percent, suffering its biggest one-day loss since 2007. Eight of the 10 S&P 500 sectors traded lower, led by declines in financials.
The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 117.28 points, or 0.67 percent, to 17,451.25. The Standard & Poor’s 500 index (INDEXSP:.INX) dipped 8.94 points, or 0.43 percent, to 2,070.65. And the Nasdaq composite (INDEXNASDAQ:.IXIC) lost 39.11 points, or 0.77 percent, to 5,049.19.
Investors continue to grapple with concerns about the extreme volatility roiling China’s stock markets, adding to fears the world’s second largest economy is slowing. Asian markets have dealt with frequent bouts of extreme volatility in the past month, with the Shanghai Stock Exchange Composite index tumbling more than 30 percent from its peak in mid-June.
The panic in Chinese mainland markets rippled across the globe, knocking down Hong Kong’s Hang Seng index dropped by 3 percent, while Japan’s Nikkei 225 dropped 1 percent, both indexes hitting a 2-week low. The losses also hit European stocks, sending Germany’s DAX and France’s CAC down 2 percent.