The Dow plummeted more than 1,000 points at its opening, before recovering to a 350-point loss around 11 a.m. The biggest drop for the Dow was 777 points back in September 2008 and today’s plunge is raising new fears over how far financial markets will fall. The Dow plunged more than 500 points last Friday, making it the worst week since 2011. The S&P 500 fell more than 2%, to 1,923 with companies losing more than $1 trillion in market value last week. The Nasdaq plummeted over 3% to 4,557 with Apple’s shares sinking below $100, after losing over $50 billion in market value last week. Brent crude oil, the global benchmark, also dropped to $43.61 a barrel, sinking below the $45 mark for the first time since 2009.
China’s state media is dubbing it “Black Monday” as markets there recorded the biggest one-day slide in 8 years. China’s benchmark Shanghai Composite index has fallen by nearly 40% since June, after rising more than 140% last year. Traders fear that slowing growth in China, the devaluation of their currency and too much debt could stifle global economic recovery. In just a few days, America’s biggest companies lost billions of dollars in market value and there are no signs of when that bleeding could stop. The market turmoil is also hurting 401(k) retirement accounts and could affect the Federal Reserve’s plans to raise interest rates for the first time in a decade.
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