Stocks tumbled Monday to kick off the new week in the red, as Wall Street reacted to fresh data showing China’s economy is in slowdown mode, overshadowing a big deal in the hard-hit energy patch. The Dow Jones industrial average ended down 313 points, or 1.9%. The Standard & Poor’s 500 index fell 2.6% and the Nasdaq composite index plunged more than 143 points, or 3%. Blue chips comprising the Dow temporarily ducked below 16,000 at one point, the first time the index has fallen below that mark since Aug. 25. The U.S. stock market is still coping with its first market correction, or drop of 10% or more, since 2011.
The latest hit to investor sentiment was a continued drop in Chinese Industrial Profits, which fell 8.8% in August vs. the same period a year ago. This is just the latest data point out of the world’s second- biggest economy that suggests economic softening. Another headline putting investors in a risk-off mode are reports that Volkswagen’s ex-CEO is being investigated for criminal charges by German authorities as part of the investigation into the emissions-cheating scandal that has engulfed the carmaker in recent weeks. FULL REPORT