China slump, higher bond yields weigh on markets
More signs of distress in China’s economy and rising U.S. bond yields are weighing on U.S. stocks in midday trading.
The Dow Jones industrial average was down 223 points, or 1.5 percent, to 14,576 at noon Eastern Daylight Time Monday.
The Standard & Poor’s index fell 29 points, or 1.8 percent, to 1,563. The Nasdaq composite fell 55 points, or 1.7 percent, to 3,302.
The selling was broad: 96 percent of the stocks in the S&P 500 fell, led by banks and materials companies.
An increase in China’s commercial lending rates brought new worries about China’s finances. China’s Shanghai Composite Index plunged 5 percent.
In the U.S., the yield on the benchmark 10-year Treasury note jumped from 2.54 percent to 2.60 percent, its highest level in almost two years.