Stocks ended sharply lower on Monday and were on track for their worst quarter in four years as investors worried about China as well as the impact of an interest-rate hike. Leah Duncan reports.
U.S. stocks ended the day sharply lower as concerns of a slowdown in China weighed on investors, and its potential impact on an interest rate hike. The Dow dropped almost two percent, the S&P 500 fell two and a half percent, and the Nasdaq ended the day down more than three percent. Commonwealth Financial Network's Brad McMillan: SOUNDBITE: BRAD MCMILLAN, CIO, COMMONWEALTH FINANCIAL NETWORK IN (ENGLISH) SAYING: "I think we've broken one important level, which was 1900 on the S&P, and, right now, valuations are adjusting downward to reflect lower confidence, and, I think, it's quite possible we will see more downward volatility." U.S. consumer spending increased in August and a key measure of inflation firmed a bit. Contracts to buy previously owned homes declined in August, a signal that the housing market could be losing some steam. Meanwhile, shares of Alcoa rose after the metals firm announced it will split into two publicly traded companies during the second half of 2016. Media General shares soared after Nextstar offered to buy the company in a deal valued at $4.1 billion. Nextstar shares dipped slightly. European stocks also ended the day lower as concerns of slowing growth in China persist.