US stocks fall as China worries persist

  • 1 September 2015
  • From the section Business
New York Stock Exchange

(Open): Stocks on Wall Street opened sharply lower as weak economic data from China reignited worries about the strength of the world's second largest economy.

The Dow Jones fell 356.77 points, or 2.2%, to 16,171.26.

The Nasdaq dropped 84.94 points, or 1.8%, to 4,691.57, while the S&P 500 was 40.45 points, or 2%, lower at 1,931.73.

The falls tracked losses seen in Asia and Europe earlier on Tuesday.

Markets headed lower after a survey suggested that factory activity in China contracted at its fastest pace in three years in August.

The official manufacturing purchasing managers' index (PMI) dropped to 49.7 from 50 in July. A figure below 50 indicates contraction.

Oil prices also fell sharply on the back of the weak PMI data. After seeing a sharp rise on Monday, Brent crude fell $2.53 to $51.62 a barrel, while US crude dropped $2.10 to $47.10 a barrel.

US oil majors were the biggest fallers in the Dow Jones, with Exxon Mobil and Chevron both down by more than 3%.

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