Stocks plunge in historic rout

Lucas Jackson | Reuters Traders work on the floor of the New York Stock Exchange.

Lucas Jackson | Reuters
Traders work on the floor of the New York Stock Exchange.

U.S. stocks plummeted in the open on Monday, following a renewed rout in global markets, under severe pressure from continued fears of slowing growth in China spilling over internationally.

Stock index futures for several major indices fell several percentage points before the open to hit limit down levels.

Circuit breakers for the S&P 500 will halt trade when the index decreases by the following three levels: 7 percent, 13 percent, and 20 percent, from its previous close.

“Fear has taken over. The market topped out last week,” said Adam Sarhan, CEO of Sarhan Capital. “We saw important technical levels break last week. Huge shift in investor psychology.”

Read More Week ahead: Markets seek clarity from China, Fed

The New York Stock Exchange is invoking Rule 48 for the Monday stock market open, Dow Jones reported.

The rule allows NYSE to open stocks without indications. “It was set up for situations like this,” said Art Hogan, chief market strategist at Wunderich Securities. It was last used in the financial crisis.

European stocks plunged more than 4 percent, while the Shanghai Composite dropped 8.5 percent, its greatest one-day drop since 2007.

Symbol
Name
Price
Change
%Change
DJIA Dow Jones Industrial Average 15500.62
-959.13 -5.83%
S&P 500 S&P 500 Index 1874.29
-96.60 -4.90%
NASDAQ Nasdaq Composite Index 4340.94
-365.10 -7.76%

Treasury yields were sharply lower, with the 10-year yield at 1.94 percent.

Oil extended losses with crude below $39 a barrel.

The dollar was weaker and the euro climbed above $1.16.

On tap this week:

Monday

9:45 a.m.: Manufacturing PMI

3:55 p.m.: Atlanta Fed President Dennis Lockhart

Tuesday

9 a.m.: S&P/Case-Shiller home prices, FHFA home prices

10 a.m.: New home sales, Consumer confidence

1 p.m.: $26 billion 2-year note auction

Wednesday

8:30 a.m.: Durable goods

9:45 a.m.: Services PMI

10 a.m.: New York Fed President Dudley on regional economy, Q&A

1 p.m.: $35 billion 5-year note auction

Thursday

Jackson Hole Fed symposium begins

8:30 a.m.: Initial claims

8:30 a.m.: Real GDP Q2 (second)

10 a.m.: Pending home sales

1 p.m.: $29 billion 7-year note auction

Friday

8:30 a.m.: Personal income

10 a.m.: Consumer sentiment

Saturday

12:25 p.m.: Fed Vice Chairman Stanley Fischer at Jackson Hole; topic U.S. inflation

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