Stocks Fall Sharply on First Day of September
Posted on September 1, 2015
The stock market got off to a very bad start for the month of September. Falling oil prices and concerns about economic conditions in China are once again behind the falling stock prices.The DOW ended the day down about 468 points (-2.84%). It was down over 500 points earlier in trading. The DOW is now well off its 52-week high of 18,351. The NASAQ and S&P each fell about 3% today.
Oil is falling due to concerns that the recent lifting of Iran sanctions will lead to more Iran oil in the marketplace. Bloomberg reports that Iran's output will start climbing early next year. The only real benefit to the falling oil prices is that gas prices are falling. Gas in the U.S. is about a dollar lower than it was at this time a year ago. Lower gas prices could eventually encourage consumers to spend more, which would help the economy.
Sam Stovall with S&P Capital IQ tells the AP that the S&P is in correction mode, meaning a decline of greater than 10%. Stovall says investors are concerned the U.S. could be headed for a recession. Take a look: