The S&P 500 dropped 64.84 points, or 3.2%, to close at 1970.89. Signs of a sharp slowdown in the world’s second-largest economy have unnerved investors since Beijing surprised markets last week by devaluing its currency. "This volatility is likely to remain with us, at least until the end of the year," said Nigel Green, CEO of deVere Group. The S&P 500 was down 2.7%, and the Nasdaq slid 3.1%.The small-cap index Russell 2000 fell 0.9% and officially entered correction territory, dropping more than 10% since its peak on June 23. Earlier, the Shanghai Composite Index tumbled 4.3%, hitting its lowest level since March, despite Beijing’s efforts to prop up the market in recent weeks. An early gauge of China’s factory activity fell to a six-and-a-half year low in August, heaping further pressure on stocks and commodities after Thursday’s global selloff. Brent crude oil, the global benchmark, fell 2.5% to around $45.48 a barrel, its lowest level since January. West Texas Intermediate crude closed down 2.1% to $40.45 a barrel after briefly dropping below $40.
– It was bad this morning, and it got downright ugly this afternoon: The Dow finished the day down 531 points, while the Nasdaq and S&P 500 were similarly hammered, reports the TheStreet. The Dow fell more than 300 points yesterday, making this the biggest two-day drop since the financial crisis. Investors are "spooked" over China's economic troubles, and it's taking a toll on both stocks and commodities, reports the Wall Street Journal. At one point today, oil dipped below $40 a barrel, which it hasn't done since the crisis. The final numbers: The Dow fell 531 (3.12%) to close at 16,460, the Nasdaq fell 171 (3.52%) and the S&P fell 65 (3.18%). One school of thought is that this is a necessary "cleansing," as an analyst puts it at MarketWatch. "I know that everyone likes to think crash when the proverbial stuff hits the fan, but a cleansing is a good thing—not a bad one," writes LA Little. "What is being said here is a correction—not a bear market—might just be the outcome when it is all said and done."