Investors rattled about China sent U.S. stock indices almost 4-percent lower on Monday in an unusually volatile session that confirmed the S&P 500 was formally in a correction, even after a dramatic rebound by Apple.
The Dow Jones industrial average briefly slumped more than 1,000 points, its most dramatic intraday trading range ever.
Monday’s drop followed an 8.5 percent slump in Chinese markets, which sparked a selloff in global stocks along with oil and other commodities.
Wall Street had stayed in s narrow range for much of 2015, but volatility jumped this month as investors became increasingly concerned about a potential stumble in China’s economy and after Beijing surprisingly devalued its currency.
Some investors unloaded stocks ahead of the close after looking to make money from volatile price swings earlier in the session.
“If things don’t settle down in China, we could have another ugly open tomorrow and you wouldn’t want to be caught holding positions you bought this morning,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.
Apple’s Chief Executive Tim Cook, in comments to CNBC, took the unusual step of reassuring shareholders about the iPhone maker’s business in China ahead of a dramatic 13-percent drop and rebound in its stock, which closed down just 2.47 percent at $103.15.
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