Wall Street Tumbles at Open on Fed, China Debt Fears; Dow Down 490 Pts By Investing.com
By Geoffrey Smith
Investing.com — U.S. stock markets tumbled at the open on a combination of worries from China’s mounting debt problems to the outcome of this week’s policy meeting at the Federal Reserve.
By 9:35 AM ET (1335 GMT), the was down 488 points, or 1.4%, at 34.097 points, its lowest in two months. The was down 1.5%, also at a two-month low. while the was down 1.6% at a one-month low.
Market sentiment has clearly deteriorated in recent days, with a series of warnings about a possible correction from the likes of Goldman Sachs (NYSE:) and Morgan Stanley (NYSE:). The latter’s analysts said in a note to clients at the weekend that they see an increasing risk of a 20% drop in the S&P 500, against a backdrop of gradually tightening monetary policy and the withdrawal of fiscal stimulus in the U.S., as well as foreign risks such as a debt crisis in China and a slowdown in Europe caused by soaring energy prices.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.