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U.S. stocks post steepest losses in four years

Monday, August 24, 2015 - 01:41

Monday's session was not for the faint of heart. Stocks post their biggest one-day plunge on concerns about China and global growth. Jeanne Yurman reports.

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Monday's trading session was enough to cause motion sickness. Following major pullbacks in Asian and European markets, the Dow plunged a record 1,000 plus points or nearly seven percent - swung back from much of those losses - then sank again closing with its biggest loss in four years. A key gauge of market volatility shot up to levels not seen since 2009. It was the third straight session of heavy selling with worries about China's slowing economy at the epicenter, says Brendan Ahern at KraneShares. SOUNDBITE: BRENDAN AHERN, CHIEF INVESTMENT OFFICER, KRANESHARES (ENGLISH) SAYING: "U.S. investors are recognizing that all is not well in the world, that China's weak manufacturing numbers are indicative of essentially a weak economy in both European Union and the U.S., their primary export markets." China's ills also hurt U.S. exports and other countries which have come to depend on the world's number two economy as a key driver of global growth in the past decade. All three major stock indices are now in correction territory - down ten percent from 52-week highs. But it's probably not the start of a bear market - a 20 percent drop - says Manhattan Venture Partners' Max Wolff. SOUNDBITE: MAX WOLFF, CHIEF U.S. ECONOMIST, MANHATTAN VENTURE PARTNERS (ENGLISH) SAYING: "I do think risk assets have been trading like they weren't risky for a long time, and, I think, that's over. And, I think, that the U.S. markets gone up for a few months when they probably should have gone down only because money ran here. And, so, we have sorting out process to do here, things will be a little less euphoric and bubbly, but I don't think a disaster is in the making." Amid the sea of red, odds of a September rate hike are fading. Though it is not off the table. The probability of one dropping from 30 to 24 percent since Friday.

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U.S. stocks post steepest losses in four years

Monday, August 24, 2015 - 01:41