“U.S. stocks opened sharply lower Monday, the first day of trade for 2016, weighed by renewed concerns of negative impact from slowdown in China and increased tensions in the Middle East,” Evelyn Cheng reports for CNBC. “The S&P 500 fell more than 2 percent in morning trade. The Nasdaq composite lost more 2.4 percent. The Dow Jones industrial average was off about 380 points as of 9:47 a.m., ET. Information technology and financials fell more than 2.5 percent in morning trade to lead most S&P 500 sectors lower. Apple fell more than 2 percent in morning trade.”
“Saudi Arabia, the world’s biggest oil exporter, cut diplomatic ties with Iran on Sunday in response to the storming of its embassy in Tehran. The protest followed the Saudi Arabia’s execution of a prominent Shi’ite cleric,” Cheng reports. “Chinese stocks plunged after Caixin manufacturing PMI showed continued contraction in that area of the economy… The Shanghai and Shenzhen exchanges ended the trading session early after the CSI 300 plunged 7 percent, triggering a circuit breaker.”
“U.S. stocks closed lower Thursday, the last day of trade for 2015. The S&P 500 and Dow Jones industrial average posted losses for the year, their worst annual performance since 2008,” Cheng reports. “The Nasdaq composite ended more than 5.5 percent higher for 2015, helped by outperformance in biotech stocks and major tech names, except Apple. The iPhone maker’s stock turned in its first negative year since 2008.”
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MacDailyNews Take: This too shall pass.