Dow plunges more than 400 points on weak China data

September 13 23:57 2015

New month, same old negative, scary, correction-like price action on Wall Street as the Dow is down more than 400 points in early afternoon trading. The first day of September on Wall Street looks a lot like the abysmal trading action in August — the worst month for the Dow since May 2010 and the stock market’s first 10% correction in four years — with investors dealing with more wild swings and losses. U.S. stocks followed a global market selloff sparked by a weak manufacturing report out of China that raised fresh fears of a worsening slowdown in the world’s second-biggest economy.USA - Business - Dow Jones Sign

The Dow Jones industrial average was down 435 points, or 2.6%, at 1:15. ET Tuesday. The Dow has tumbled back into correction territory, as it is again down more than 10% from its May peak. The broader Standard & Poor’s 500 stock index fell 2.7%. The Nasdaq composite index dropped 2.5% and also tumbled back into a correction. The selloff began in Asia on the weak economic news out of Beijing, and then spread to Europe. Shares of the Nikkei 225 in Japan fell nearly 4% earlier Tuesday, with stocks finishing 2.2% lower in Hong Kong and down 1.2% in Shanghai. In Europe, shares slid too, with stocks down about 3% in London, and 2.4% lower in Germany and off 2.5% in France.

Investors looking for a respite from the selling that pushed the Dow Jones industrial average down 6.6% in August and the S&P 500-stock index down 6.26% — its worst monthly plunge since May 2012 — are getting more of the same violent downward price action to kick off the first day of trading in September.

Based on the volatile price action, it looks like Wall Street is not out of the woods yet when it comes to the recent corrective phase, the stock market’s first since 2011. Wall Street had already been bracing for a volatile September, as the ninth month of the year has historically been one of the worst months for the stock market. September has been the worst-performing month for the Dow in the past 50 and 100 years, data from Bespoke Investment Group show.