Stocks quickly turned into turmoil shortly after Monday’s opening bell on Wall Street. According to NBC News, within minutes of the first trades, the Dow Jones industrial average plunged by 1,000 points. The decline extends the losses seen last week, which was already the worst seen in four years.
At its lowest point on Monday morning, the Dow saw a decline of 1,089 points or roughly 6.6 percent. While it’s far from the drops seen in the stock market crashes of 1929 and 1987, it did grab investor’s attention. Click here for more from NBC News.
CNN Money reported at one point it was on track for its worst percentage decline since the 2008 financial crisis.
"We have not seen this level of full-blown panic in markets for quite some time," Peter Kenny, chief market strategist at Clear Pool Group, a financial technology firm, told CNN Money.
Business Insider adds the S&P 500 was down about 4 percent and the Nasdaq fell 5 percent on Monday morning. The losses triggered a “limit down,” briefly pausing trading.
As Reuters noted in a report here, a nearly 9 percent dive in China shares coupled with a sharp drop in the dollar and other major commodities sent the investors racing for the exit.
"It is a China-driven macro panic," Didier Duret, chief investment officer at ABN Amro, told Reuters. "Volatility will persist until we see better data there or strong policy action through forceful monetary easing."
Takako Masai, head of research at Shinsei Bank in Tokyo, added that “things are starting look like the Asian financial crisis in the late 1990s. Speculators are selling assets that seem the most vulnerable.”