Stocks nosedive; Dow loses 1000 points at open

The Dow Jones industrial average fell drastically as stocks nosedive worldwide on Monday.

The Dow fell by more than 1000 points within the first few seconds of trading Monday morning. The index bounced back by the early afternoon and sat at about 200 points below where it started by 1 p.m.

The fall came after Chinese stocks had their worst day since 2007.

The European stock markets were next to take the plunge when the Financial Times Stock Exchange (FTSE) dropped by £74bn  or $116bn.

China is being fingered as the source of the crash, with China’s devaluation of its currency two weeks ago being pointed to as a major sign of weakness in the world’s second biggest economy.

China announced on Sunday that it would now allow pension funds to invest in the markets, adding a potential $97bn.

A slowdown in the Chinese economy could be a sign of a slowdown worldwide.

So far 2015 has been a bad year for markets overall

On Jan. 2, the Standard and Poors index opened at 2,058.90 and when it opened on Aug. 21, it was at 2,034.08. Essentially, the S&P is dead in the water.

Additionally, a market slowdown might really hurt the average American worker.

While CEO pay continues to rise and now stands at around 300 times that of the average worker, real worker wages rose by only 0.7 percent last quarter, the smallest increase on record.

 

[NBC News] [CNBC] [Bloomberg] [The Guardian] [AFL-CIO] [Photo courtesy of TIME]