NEW YORK (AP) – U.S. stocks are falling Thursday, following global markets lower after a steep drop in China’s exports. China is the second-largest economy in the world and its weakness could slow down growth in the U.S. Banks are taking the largest losses, and investors are favoring stocks that pay big dividends, including utility companies.
KEEPING SCORE: The Dow Jones industrial average sank 78 points, or 0.4 percent, to 18,065 as of 1:27 p.m. Eastern time. The Standard & Poor’s 500 index fell 10 points, or 0.5 percent, to 2,129. The Nasdaq composite lost 34 points, or 0.7 percent, to 5,204. Earlier the Dow fell as much as 184 points.
CHINA WORRIES: China’s exports fell 10 percent in September versus a year ago. That was a much bigger drop than in August and also a larger decline than analysts expected. China has been critical to global economic growth for a quarter century. Since the summer of 2015, stocks have periodically been roiled by worries that China’s economy was weakening.
China’s economy seemed to be doing better over the last few months, said David Chalupnik, head of equities for Nuveen Asset Management. But the data for imports and exports challenges that.
“The question is, is it just one number or is this the start of a new trend?” he said.