NEW YORK – Stocks took another nosedive Tuesday following more fears about a slowdown in China’s economy.
The Dow Jones Industrial Average plunged more than 500 points, or 3.1%, and is 12% below the all-time high it set in May, CNN reported. The S&P 500 fell 3.3% and is once again in a so-called correction. It’s down more than 10% from the record that it hit in May.
Only two stocks in the S&P 500 were higher heading into the close –Cablevision () and American Airlines ( ).
The tech-heavy Nasdaq sank 3.2% as well and is 11% below its July peak. The Nasdaq also lost its gains for the year Tuesday and is now 2% lower in 2015.
It’s an ominous start to September, which is historically the worst month for stocks. (Investors may be singing “Wake Me Up When September Ends” by Green Day if this keeps up.)
And it comes after the market suffered a miserable August. The Dow had its worst month in more than 5 years while the S&P 500 had its biggest monthly drop since May 2012.
Weakness in China, the world’s second-largest economy, is a major concern for traders. Two separate reports that came out Tuesday morning showed continued sluggishness in China’s manufacturing sector.
The IMF also warned Tuesday that China’s slowdown will have an impact on the rest of the global economy.