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.”
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.
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:
9:45 a.m.: Manufacturing PMI
3:55 p.m.: Atlanta Fed President Dennis Lockhart
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
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
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
8:30 a.m.: Personal income
10 a.m.: Consumer sentiment
12:25 p.m.: Fed Vice Chairman Stanley Fischer at Jackson Hole; topic U.S. inflation