Investors haven’t quite recovered from Monday’s dramatic global stock selloff.
The Dow was off over 100 points around noon on Monday, while the Nasdaq fell 0.5% and the S&P 500 was off 0.3%.
European markets were mostly up a little after China’s markets weathered a tough day. The Shanghai composite index ended with a 0.3% loss Tuesday after a slightly volatile session. The Chinese government tried to reassure investors Tuesday, announcing it had was pumping $20 billion into the financial system.
Tuesday losses were modest compared to a brutal day for investors around the world. The dramatic declines globally on Tuesday were prompted by news that China’s factory production had been weaker than expected. The country’s main stock market in Shanghai actually halted trading after stocks fell 7%.
Investors read it as a sign that China’s economy might be slowing down faster than previously thought.
That grim news sent markets south. After European markets sold off, the Dow dropped as much as 467 points before recovering a little and ended the day off 276 points.
Usually, after steep losses, stock markets tend to bounce back. But U.S. investors seem to be reluctant to jump back into the market ahead of the big monthly U.S. jobs report that’s due on Friday.
The report will provide an important snapshot of the health of the U.S. economy. Both October and November showed strong hiring by employers. Investors want to see if the momentum kept going in December.
