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US stocks dropped broadly early Monday while extending decline recorded last week as global markets sold off on fresh concerns over the economic growth.
The Dow Jones Industrial Average declined 124 points or 0.7 percent to 16989 in early trade. The Standard & Poor’s 500 index fell 14 points or 0.7 percent to 1969, while the Nasdaq Composite Index dropped 29 points or 0.7 percent to 4483 in the early trading.
The early declining figures come amid declines in Asia and Europe due to the pro-democracy protests in Hong Kong that halted banking sector and other businesses, prompting crackdowns by police.
Hong Kong protests come as investors continued to wrestle with the Chinese economic growth outlook more broadly that has slowed following years of rapid expansion.
Moreover, the prolonged tensions between Russia and Western countries have also spurred worries about the growth pace of European economy. Meanwhile, the investors are also weighing the outlook for the US economy as the Federal Reserve Bank mulls over raising key rates that is expected sometime next year.
“We have seen a pullback in risk assets on global growth concerns,” said John Briggs, head of cross-asset strategy at RBS.
Last week witnessed a return of volatility in the US stocks after a relatively sleepy summer. Despite the recent turbulence in the stock market, the Standard & Poor’s 500 index increased 6.5 percent this year and 0.4 percent for the quarter. The broad-market index is just 2 percent off its most recent all-time high set on September 18.
The negative sentiments started overnight on Monday in Hong Kong, where stocks dropped 1.9 percent amid the crackdown by the government on pro-democracy protests.