Dow tries to rebound after plunge

U.S. stocks are paring their losses in midday trading after opening sharply lower on the back of big losses for China’s stock market.

The slump was part of a global wave of selling triggered by increased signs of an economic slowdown in China.

Monday, the Dow closed 588 points down. The Dow plunged more than 1,000 points at the open and the S&P 500 sank into correction territory on Monday as global fears about China’s economic turbulence mounted.

The S&P 500 dropped 27 points, or 1.4 percent, to 1,943.

The benchmark index fell 1,089 before it quickly righted itself to a loss of 603 points, or 3.7 percent, to 15,858.

The Nasdaq is down 209.81 points, or 4.4 percent. China’s Shanghai Composite plummeted 8.5%, wiping out all of its massive gains so far this year.

America’s stock market is getting absolutely crushed.

Those declines followed tumbles over the weekend in emerging markets such as Egypt, Dubai and Saudi Arabia. Not only has an apparent bubble in Chinese equities popped, but the country’s economy may be slowing much faster than feared. Currencies fell hard in developing economies – particularly those that rely heavily on the export of commodities and oil, both of which China is a big consumer.

“Most importantly, the average investor should not panic”, Zandi said.