Chain reaction: US indices tumble 2%

NEW YORK: US stock indices tumbled about 2% on Monday after weak Chinese economic data reignited fears of a global slowdown. Mainland Chinese shares fell 7%, triggering a new circuit breaker that prompted a trading halt, after surveys showed factory activity in the world’s second-largest economy shrank sharply in December. Adding to investors’ worries, China’s central bank fixed the yuan at a 4-1/2 year low, weakening it against the dollar. The Dow Jones industrial average was down 2.01%, the S&P 500 was down 1.84% and the Nasdaq Composite index was down 2.23%. All 10 major S&P sectors were lower, led by the 2.4% decline in the tech sector. Apple was the biggest drag on the S&P and Nasdaq, falling 2% to $103.16. The iPhone maker’s stock closed 2015 down more than 4%.

 

Published in The Express Tribune, January 5^th, 2016.

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