Chinese e-commerce giant Alibaba’s stocks dropped four percent on second day of its trading at the New York Stock Exchange (NYSE)after a blockbuster beginning on Friday.
The drop on second day contributed to a sharp hit at the Wall Street on Monday as tech stocks plunged further.
The investors’ concern over a sluggish Chinese economy also reflected on global stocks as the crude oil prices dropped.
Meanwhile, the Dow Jones industrial average recoiled from its record close on Friday and fell more than 100 points to 0.6 percent in afternoon trading.
On the other hand, the Standard & Poor’s 500 index declined 0.8 percent and dropped below 2000. And the tech-heavy Nasdaq composite index fell 1.2 percent.
The disappointing report of home sales added on to the negative tone on the Wall Street. According to the reports, the existing home sales broke down the four-month gaining string and dropped 1.8 percent in August.
The Asian market shares also skidded on Monday as the investors awaited for data early this week that could provide enough evidence to the slowdown in the Chinese economy. The flash manufacturing PMI reading of China is due to be released on Tuesday. It is expected to come in under the 50-level, providing enough clue of contracting manufacturing activity in Asia’s largest economy.
Japan’s Nikkei declined 0.7 percent to 16,205.90, while Hong Kong’s Hang Seng index fell 1.4 percent to 23,955.49.
The Dow closed on Friday at a record high as the blue-chip index increased 13.75 points, 0.1 percent, to 17,279.74.
The S&P 500 declined one point to 0.1 percent to finish at 2010.40, while the Nasdaq dropped 13.64 points to 0.3 percent, to close at 4579.79.