WATCH ABOVE: A global stock selloff sent the markets into freefall. The Dow Jones plunged more than 500 points and the TSX was down 260 points, while oil closed at barely $40 a barrel. As Jackson Proskow reports, the Chinese economy and falling oil prices are now hitting close to home.
NEW YORK — The Dow Jones industrial average has plunged more than 530 points and is in a correction amid a global sell-off sparked by fears about China’s slowing economy. Oil tumbled below $40 per barrel for the first time since the financial crisis.
The Dow Jones industrial average fell to 16,459.75, and ended down 3.1 percent on Friday. The Standard & Poor’s 500 index dropped 64.84 points, or 3.2 percent, to 1,970.89. The Nasdaq slid 171.45 points, or 3.5 percent, to 4,706.04.
READ MORE: Here’s why gas prices are climbing in Canada while oil plummets
The selling began in Asia, then spread to Europe, with major indexes there losing more than 2 percent. Gold, a traditional haven for fearful investors, rose for a second day.
WATCH: Financial analysts say a slowing of Chinese manufacturing and the resignation of Greece’s prime minister, Alexis Tsipras influenced the huge selloff. Karina Mitchell reports
Markets began falling last week after China announced a surprise devaluation of its currency, the yuan. Investors interpreted the move as a sign the slowdown in the world’s No. 2 economy could be more extreme that they had thought. On Friday, they got more bad news: A survey showed the manufacturing sector on the mainland continues to contract.
Investors are also worried about more turmoil in Greece after the resignation of its prime minister.
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