Dow Plummets More Than 1,000 Points

U.S stocks plunged Monday, with the Dow Jones Industrial Average plummeting more than 1,000 points following a global stock sell-off across European and Asian markets as fears escalated about China’s slowing economy. All three major indexes are on course for one of their worst opens since the financial crisis of 2008.

The sharp U.S. stock downturn was anticipated after futures pointed to Monday mayhem. Dow futures plunged more than 800 points before the U.S. markets opened, as fears of a major Chinese economic downturn escalated across global markets. European markets extended losses in afternoon trade Monday, with the pan-European Stoxx 600 index down nearly 5 percent. Japan’s Nikkei 225 index dropped 4.6 percent to finish at its lowest closing level since February 23. China’s benchmark Shanghai Composite recorded its biggest one-day percentage loss since 2007, closing down 8.5 percent, dubbed “Black Monday” by China’s state media.Â

The Dow Jones Industrial Average (INDEXDJX:.DJI) tumbled 1,089 points, or 6 percent, to 15,370.33. The S&P 500 index (INDEXSP:.INX) lost more than 100 points, or 5 percent, to 1,867.01. And the Nasdaq composite (INDEXNASDAQ:.IXIC) dropped 412 points, or nearly 9 percent, to 4,292.14.

The stock rout began with China's posting of numbers that showed factory production in the world’s second-largest economy shrank in August at its fastest rate in more than six years. The numbers fuel concerns that China’s sudden slowing will have far-reaching effects around the world.

All 10 sectors in the S&P 500 traded lower, led by a more than 6 percent decline in consumer staples and technology stocks. Healthcare and consumer discretionary stocks dropped more than 5 percent.

Meanwhile, all 30 stocks in the Dow traded sharply lower, led by a 5 percent decline from The Coca-Cola Co . NYSE:KO, while Cisco Systems Inc. NASDAQ:CSCO and McDonald's CorporationNYSE:MCD lost more than 4 percent.

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The yield on the U.S. 10-year Treasury slid further Monday to 1.97 percent from 2.045 percent Friday amid growing uncertainty about global economic growth. When investor confidence is low, the price on the 10-year goes up as there is more demand for Treasurys as a safe investment, and yields subsequently fall.

The U.S. dollar fell against major currencies amid growing uncertainty of whether the U.S. Federal Reserve may wait even longer than planned after September to raise interest rates.

U.S. oil prices extended losses Monday, tumbling 4 percent to trade below $30 after tallying an eighth straight weekly decline last week, the longest weekly losing streak in nearly 30 years. U.S. crude oil has lost around 17 percent from its opening price at the start of the month.

West Texas Intermediate crude, the benchmark for U.S. oil prices, fell 4 percent to $38.69 per barrel for October delivery on the New York Mercantile Exchange. On the London ICE Futures Exchange, Brent crude, the global benchmark for oil prices, dropped nearly 3.5 percent to $43.87.