US stocks plunge after bleak Chinese manufacturing report
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US stocks plunge after bleak Chinese manufacturing report

NEW YORK (AP) — Markets turned turbulent again after investors were unnerved by more signs of weakness in China, the world’s second-largest economy.

U.S. stocks sank 3 percent Tuesday, their third-worst drop this year. The two bigger falls occurred in the last two weeks.

The Dow Jones industrial average dropped 469 points, or 2.8 percent, to 16,058.

The Standard & Poor’s 500 index fell 58 points, or 3 percent, to 1,913. The Nasdaq slid 140 points, or 2.9 percent, to 4,636.

Oil prices also fell sharply as traders worried that China’s weakening growth would mean lower demand for crude. U.S. oil sank almost 8 percent.

The plunge in oil sent energy stocks sharply lower. Exxon Mobil dropped 4 percent.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.16 percent.

Earlier, the head of the International Monetary Fund said global economic growth is likely to be weaker than earlier expected and will remain at moderate levels.

IMF Managing Director Christine Lagarde said Asia is still expected to lead global growth, but the pace is slowing with a risk of possibly sagging further because of recent financial market volatility.

Speaking Tuesday in a lecture at the University of Indonesia, Lagarde said the global economic situation will have a significant impact on developing countries, including Indonesia.

Lagarde, who is on a two-day visit to Indonesia, met Tuesday with President Joko “Jokowi” Widodo and discussed the global economic situation.

Indonesian officials and the IMF’s senior resident representative denied speculation that Indonesia is seeking loans from the IMF.