Dow Jones Industrial Average Sinks As Commodities Struggle To Stabilize After

Wall Street started the week with another round of selling, placing the market squarely in “correction” mode. This is just the latest data point out of the world’s second- biggest economy that suggests economic softening.

The stock market had its worst drop in almost a month as investors anxious about more signs of weakness in China’s economy.

The broad-based S&P 500 slipped 0.90 (0.05 percent) to 1,880.87, while the tech-rich Nasdaq Composite Index dropped 12.00 (0.26 percent) to 4,531.61.

Erasing earlier losses, futures for the Dow Jones Industrial Average rose 68 points, or 0.4%, to 15,977, while those for the S&P 500 index climbed 10.90 points, or 0.6%, to 1,883. In addition, CNBC reported that hedge fund manager and billionaire investor Carl Icahn is set to release a video tomorrow warning of danger ahead for markets, aruging that the Federal Reserve’s low interest rate policy has led to bubbles in art, real estate and high-yield bonds and that the fallout could be severe.

Data: However, US investors shrugged off those concerns in premarket trade on Tuesday and instead looked ahead to the data docket, which could help indicate the timing of a USA rate hike.

On the winning side was aluminum giant Alcoa, which jumped 5.7 percent on news it would split into two companies. The ETF fell further into bear market territory, or more than 20 per cent from its 52-week high. Oil prices fell more than 2%.

“It feels like the market wants to test the August lows, but honestly the only thing we know about today’s equity markets is that they won’t close unchanged”, said Stephen Guilfoyle, managing director of New York Stock Exchange floor operations for Deep Value Inc., in a note.

The downbeat mood carried into Asian trade on Tuesday, as Japan’s Nikkei 225 turned negative for the year. The FTSE 100 in London was off 1.6%, the DAX in Germany was down 1.7% and the CAC 40 in Paris was 2.3% lower.