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Wall Street begins year sharply lower after China selloff

Monday, January 04, 2016 - 00:30

U.S. stocks tumble, putting the Dow on track for its worst start to a year since 1932 after weak Chinese economic data fanned fears of a global slowdown. Rough Cut (no reporter narration_).

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ROUGH CUT (NO REPORTER NARRATION) U.S. stocks tumbled on Monday (January 4), putting the Dow on track for its worst start to a year since 1932 after weak Chinese economic data fanned fears of a global slowdown. Surveys showed factory activity in the world's second-largest economy shrank sharply in December, sparking a 7-percent slide in Chinese shares that triggered a trading halt. Adding to investors' worries, China's central bank fixed the yuan at a 4-1/2 year low, further weakening it against the dollar. U.S. data sparked further concern as factory activity weakened unexpectedly in December, according to the Institute for Supply Management. Amazon weighed the most on the S&P and Nasdaq, falling 6.9 percent to $629.56, while the Nasdaq Biotech Index was down 4 percent. The Dow Jones industrial average was down 417.03 points, or 2.39 percent, to 17,008, the S&P 500 had lost 47.96 points, or 2.35 percent, to 1,995.98 and the Nasdaq Composite had dropped 142.39 points, or 2.84 percent, to 4,865.02. The S&P 500 was on track for its worst start to a year since 2001. The selloff was widespread but not as deep as the slide caused by worries of a China-led global slowdown in August, when the Dow tumbled more than 1,000 points at one point.

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Wall Street begins year sharply lower after China selloff

Monday, January 04, 2016 - 00:30