Stocks Set to Open Much Lower as Selloff Continues
Posted on August 24, 2015
Stocks are headed for a much lower opening this Monday morning. Dow futures are trading down over 700 points as of 9:20 am EST, a drop of over 4.3%. The Nasdaq futures are currently down over 208 points, nearly 5%, and the S&P 500 futures are also down about 4%.Concerns about the health of the economy in China are driving stocks down globally. Today's potential drop follows a bad week for Wall Street last week. The DOW lost over 1,000 points last week on China fears. It was the worst week for the DOW in four years. Oil prices also joined in the plunge.
CNBC reports that the New York Stock Exchange will invoke Rule 48 today. CNBC says this "rule allows NYSE to open stocks without indications."
The Shanghai index lost over 8%. The Japan NIKKEI lost 4.6%. Manufacturing and exports are much lower in China, which is what has investors concerned about the Chinese economy. Mellody Hobson, president of Ariel Investments, says this could become a buying opportunity for U.S. stocks if the correction continues.
She says, "We have been in a six year bull run and bull markets don't go on forever. We just can't expect that." Take a look: