The global stock markets plummeted today primarily due to the deepening worries of investors regarding China’s slowing economy. The U.S. equity markets suffered another decline, and moving down towards its worst week since 2011.

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The Dow Jones Industrial Average declined 3.10%, the S&P 500 dropped 3.16%, the NASDAQ fell 3.52%, and the Russell 2000 slid 1.12%. The Dow Jones lost 10% from its all-time high and entered the correction territory.

Investors became more concern about the Chinese economy after a new data showed that the factory activities in the country declined to its March 2009 level. The preliminary Purchasing Managers’s Index from Caixin Media and Markit Economics dropped to 47.1 points, lower than the 48.1 points median estimate by economists. It was also lower than the 47.8 points final reading last month.

Shen Jianguang, chief Asia economist at Mizuho Securities, told Bloomberg that the stimulus measures implemented by the Chinese government “haven’t boosted manufacturing yet.” The economist added, “August and September may be the darkest moments for the economy; a rebound is expected in the fourth quarter when funds channeled to local governments are actually spent.”

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On the other hand, Zhao Yang, chief China economist at Nomura Holdings commented, “The stimulus measures so far are not enough. If there are no fresh pro-growth measures from the government, the economy will continue to weaken.”

IG market analyst David Madden said, “China has been on a mission to keep up the illusion of a gradual slowdown, but dealers aren’t buying it anymore.”

Jim Chanos of Kynikos Associated believed that China’s economic slowdown us “worse than you think.” During an interview with CNBC’s Fast Money, Chanos said, “people are beginning to realize that the Chinese government is not omnipotent and omniscient.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 16,463.22 (-3.10%)
  • S&P 500- 16,463.22 (-3.16%)
  • NASDAQ- 4,706.04 (-3.52%)
  • Russell 2000- 1,159.36 (-1.12%)

European Markets

  • EURO STOXX 50 Price EUR- 3,247.26 (-3.17%)
  • FTSE 100 Index- 6,187.67 (-2.83%)
  • Deutsche Borse AG German Stock Index DAX- 10.124.52 (-2.95%)

Asia-Pacific Markets

  • Nikkei 225- 19,435.83 (-2.98%)
  • Hong Kong Hang Seng Index- 22,409.62 (-1.53%)
  • Shanghai Shenzhen CSI 300 Index- 3,589.62 (-4.57%)

Stocks in Focus

The stock price of Apple declined more than 6% to $105.76 per share. China’s economic slowdown is hurting the stock. Apple considers China as one of its largest markets for iPhones.

Salesforce.com climbed more than 2% to $69.25 per share after reporting second-quarter earnings that beat the expectations of Wall Street analysts. The company also provided a strong outlook for the full fiscal year 2016. Salesforce posted adjusted earnings of $0.19 per share in $1.63 billion in revenue.

The stock value of Lending Tree plummeted more than 17% to $110.88 per share. Trade-Ideas LLC categorized the company as “water-logged and getting wetter.” The company is one of the biggest decliners on NASDAQ today.

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