[Ed. – Day’s not over yet. Unless the Dow rebounds, which look very unlikely at this point, this will be a new record for a single-day plunge, far outstripping the 777-point drop in 2008. The percentage drop in total Dow valuation, between 4% and 5%, has of course a long way to go to surpass the 22.61% loss on 10-19-1987, and the 2-day loss of 24.81% on 10-28 and 10-29 in 1929.]
Stocks plunged at the open as the market bloodbath showed no signs of letting up with the Dow tumbling as much as 1,089 points in the opening minutes of trading.
The Standard & Poor’s 500 index plunged 4.4% as the broad-based index joined the Dow in correction territory, a drop of 10% or more from its recent high. The Nasdaq composite index dropped 5% and also fell into a correction.
Market anxiety is on the rise after a big sell-off in China overnight, where the Shanghai composite index shed 8.5%, its biggest one-day decline since 2007 — and Chinese media were dubbing the selloff “Black Monday.” The global stock rout then moved to Europe where major indexes there are off roughly 5%.
The massive selloff, which kicked into high gear last week when the Dow tumbled more than 1,000 points and sank into official correction territory, which is defined as a drop of 10% or more. Wall Street is still trying to gauge what will stop the landslide and stabilize the battered market, how bad the ultimate decline will be, and when it’s safe to dive back into the market and seek out battered stocks.