The stock markets in the United States and other parts of the world experienced another selloff today. The global market selloff demonstrates the continued concerns among investors regarding the slowing economic growth in China, which is expected to affect the global economy.

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Matt Maley, an equity strategist at Miller Tabak & Co LLC, told Bloomberg, “The problem is, as much as China is the catalyst for this, it’s also that we’re seeing weakness in fundamentals here.” He noted that the earnings of many companies in the second quarter were impacted by China, which made the situation worse.

“People are losing confidence with the whole situation breaking down, not just in the stock market, but in data as well,” added Maley.

The Shanghai Composite Index declined as much as 4.8% after manufacturing reports shows that the China’s economic slowdown is deepening. Today, the Institute for Supply Management reported that its manufacturing index dropped from 52.7 to 51.1 last month, an indication that the strong dollar and slowing Chinese economy is weighing on the U.S. manufacturing.

Meanwhile, Christine Lagarde, the managing director of the International Monetary Fund (IMF) said the global economic growth is worse than expected less the two months ago. She said. “This reflects two forces: a weaker than expected recovery in advanced economies, and a further slowdown in emerging economies, especially in Latin America.”

Last week, the Department of Commerce reported that U.S. economy expanded at an annual rate of 3.7%. The labor market remained strong with employers creating an average of 211,000 jobs per month. The unemployment rate is 5.7%, the lowest in seven years.

Federal Reserve Vice Chairman Stanley Fisher also stated last week that the central bank hasn’t ruled out raising interest rates during its next meeting on September 16 to 17.

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 16,058.85 (-2.84%)
  • S&P 500- 1,913.85 (-2.96%)
  • NASDAQ- 4,636.11 (2.94%)
  • Russell 2000- 1,128.02 (-2.71%)

European Markets

  • EURO STOXX 50 Price EUR- 3,188.73 (-2.47%)
  • FTSE 100 Index- 6,058.54 (-3.03%)
  • Deutsche Borse AG German Stock Index DAX- 10,015.57 (-2.38%)

Asia-Pacific Markets

  • Nikkei 225- 18,165.69 (-3.84%)
  • Hong Kong Hang Seng Index- 21,185.43 (-2.24%)
  • Shanghai Shenzhen CSI 300 Index- 3,362.08 (-0.13 %)

Stocks in Focus

The stock price of Dollar Tree declined more than 9% to $69.09 per share. The company reported a loss of $98 million or $0.46 per share in the second quarter, lower than its $121.5 million profit or $0.59 per share in the same period last year. Its net sales increased 48.3% to $3.01 billion from $2.03 billion.

Netflix tumbled more than 8% to $105 per share. The company’s stock was negatively impacted by investors concern that Apple will soon compete with Netflix in the original in the content space. The report indicated that Apple aims to become a strong competitor to Netflix.

Trevena surged more than 50% to $9.05 per share. The clinical-stage biopharmaceutical company is the biggest gainer on NASDAQ today. Trevena announced that positive results from its Phase 2b study of TRV130, an intravenous therapy’s for acute postoperative pain.

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