Mid-Day Market Update: Markets Crash As China, Oil Concerns Ramp Up

The United States stock market plummeted, with the Dow sinking more than 1,000 points in Monday’s morning session. Coming off of one of the worst weeks since the 2008 Financial Crisis, the S&P 500 futures were trading 100 points lower in the pre-market session.

The cause of the current meltdown revolves around China and the prices of oil. China’s Shanghai Stock Exchange Composite Index fell 8.5 percent on Monday, worrying investors around the world on its potential growth. Crude oil prices dropped nearly 5 percent down to the price range of $38. Investors are fearing the world’s second-largest economy (China) may be in tough economic conditions as its exports, growth slow along with their unexpected devaluation of their currency.

According to the Wall Street Journal, to prevent the major sell-offs in the U.S. markets, the Federal Reserve would be preparing to “flood the banking system with liquidity to increase lending.”

The Dow has pared some losses as it rebounded to being down in the range of 300-400 points in the mid-day session. Apple Inc AAPL dwindled nearly 11 percent just as the market opened, but regained some of those losses. Ford Motor Co F sank nearly 13 percent just as the markets opened, but gained some momentum as it rebounded nearly 8 percent.

The Dow Jones Industrial Index dwindled 1.75 percent, the S&P 500 declined 2.15 percent, the NASDAQ Composite sunk 2.67 percent, and the U.S. Dollar Index fell a whopping 1.12 percent in Monday’s session.

Winners

AGL Resources Inc GAS soared 28 percent on such a high volatile market day after the company was reported to be acquired by Southern Company SO for a deal totaling to $12 billion.

Ocata Therapeutics Inc OCAT was lifted 13 percent after the company received a small business innovation research phase I grant from the National Institute of Allergy and infectious diseases to fund more preclinical development of Mesenchymal Cell product to treat systemic lupus erythematosus and lupus nephritis, according to Briefing.com

Hubbell Inc (NYSE: HUB-A) was up 16 percent after the company reported plans to create a single class of common stock and increased its share repurchase authorization.

Gevo Inc GEVO was heightened 13 percent after the company, along with Butamax Advanced Biofuels entered into a worldwide patent cross-license and settlement agreements that settled a patent dispute.

Losers

Vital Therapies Inc VTL sank 78 percent after the company reported on Sunday that the topline results of its VTI-208 trial failed to achieve primary or secondary endpoints of improvement in overall survival.

Sky-mobi Limited MOBI dwindled 21 percent after the company reported less-than-expected earnings.

China Information Technology Inc CNIT tumbled 20 percent after worries increase for China’s growth.