U.S. stock indices extended declines on Monday amid renewed concerns over China's economic growth and mixed data on the U.S. economy.
The Dow Jones Industrial Average fell 312.78 points, or 1.9%, to 16,001.89. The S&P 500 declined 49.57, or 2.6%, to 1,881.77 (all of its sectors closed down). The Nasdaq Composite Index lost 142.53, or 3%, to 4,543.97.
On Monday investors watched closely speech of FOMC Member Dudley, who said that the central bank is likely to raise rates later this year. He noted that rates can be raised at any meeting, including October. Market participants will pay much attention to employment data due Friday.
US Bureau of Economic analysis reported that personal spending rose in August beating experts' expectations. The latest data suggest that consumers continue supporting the economy despite turmoil in financial markets and slowing growth overseas. Personal spending rose by 0.4% in August compared to the previous month. In July and June spending rose by 0.4% and 0.3% respectively. Meanwhile personal income rose by 0.3% in August. Economists expected a 0.3% rise in spending and a 0.4% rise in income.
This morning in Asia Hong Kong Hang Seng fell 3.30%, or 700.03, to 20,486.29. China Shanghai Composite Index fell 2.05%, or 63.56 points, to 3,037.19. The Nikkei lost 3.71%, or 654.94, to 16,990.17.
Asian stocks fell following declines in U.S. equities. A stronger yen also weighed on stocks of Japanese exporters.
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