Now that's a manic Monday.
U.S. stocks had a rollercoaster start to the week, with prices in free fall just minutes into the start of trading on Monday morning only to recover sharply for finishing the day sharply lower.
The Dow Jones Industrial Average opened down an incredible 1,015 points, or 6%, while the S&P 500 was down about 5% and the Nasdaq Composite Index -- which represents tech stocks -- opened down 8% on Monday in a day of baffling ups and downs.
After the initial shock of the panic-level drops, the Dow steadily recovered, , nearly breaking even at one point during the day, only to see declines through the afternoon. The index closed down 588 points, or 3.6%.
The S&P 500 and the Nasdaq fared even worse, dropping 3.9% and 3.8% respectively.
Investors greeted the day with concern early on, expecting terrible news. Futures for the Dow Jones Industrial Average -- which frequently predict the behavior of the U.S. markets throughout the day -- were down 800 points early Monday. The drops were so harsh that regulators halted all trading in S&P 500 index futures and Dow Jones futures, pulling the so-called "circuit breaker," so that they would not fall further.
Nasdaq hit its daily loss limit of 5% even before the market opening.
The futures reflected the dire situation of the Chinese stock market.
The Shanghai Composite Index, the most closely watched collection of stocks in China, took another tumble on Monday, dropping 8.5% to extend the country's recent market crash. Including Friday's decline, the index is now down almost 40% from its peak in early June. The struggles have led to some ugly scenes in China, including the head of a small metals exchange Fanya Metals Exchange recently being accosted by a mob, which turned him over to police.
[seealso slug=http://sale-online.click/2015/08/21/us-stocks-hammered-again/%5D%3C/p%3E%3Cp%3ELast week, U.S. stocks dipped sharply toward the end of the week, with Friday marking one of the worst declines in years.
The Dow Jones Industrial Average, which tracks the stocks of 30 closely watched companies, is now down about 13% from its peak earlier this year. The Nasdaq Composite Index, which contains mostly tech stocks, is also down about 13% from its high in July.
Are we having fun yet? pic.twitter.com/tZcfpc2VgF— Ivan the K ️™ ️ (@IvanTheK) August 24, 2015
There had been some hope that the market would rebound on Monday, but most indicators show another day in the red. U.S stock futures -- derivatives that tend to give an indication of where the market is headed -- were sharply lower on Monday morning. U.S markets begin trading at 9:30 A.M. EST.
Market snapshot this AM: Dow futures indicated down 365, S&P down 40, Nasdaq down 155. Oil below $39. 10-year yielding 1.997%— Becky Quick (@BeckyQuick) August 24, 2015
US stock futures were down last night, but not down like this morning...it will be an ugly day, at least to start...— Dominic Chu (@TheDomino) August 24, 2015
This goes without saying, but for the newbies: pic.twitter.com/B1hhDNYRPq— Ivan the K ️™ ️ (@IvanTheK) August 24, 2015
China is the world's second-largest economy, and its slowdown over the past few months has created worries among international companies that depend on Chinese consumers to buy their products. The slowdown has also been seen in falling commodity prices, particularly oil, which hit a six-year low on Monday. Those prices can have a serious ripple effect on smaller emerging economies that often rely on the export of commodities.
The recent downturn in stocks -- not just in China and the U.S. around the world -- has worried investors that dark times are coming after a six-year "bull" market, in which prices have risen consistently.