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
Additionally, a market slowdown might really hurt the average American worker.
[NBC News] [CNBC] [Bloomberg] [The Guardian] [AFL-CIO] [Photo courtesy of TIME]