U.S. stocks slid, following equities’ biggest gain since May, as China’s currency devaluation sparked concern across global markets that the world’s second-largest economy is headed for a deeper slowdown.
The Standard & Poor’s 500 Index declined 0.9 percent to 2,084.35 at 4 p.m. in New York, with the gauge holding above its average price during the past 200 days.
China devalued the yuan by 1.9 percent, the most in two decades, after data this month showed a plunge in exports, weaker-than-estimated manufacturing and a slowdown credit growth. The surprise move rippled through global markets, sparking selloffs in emerging-market currencies, commodities, and auto and luxury stocks with exposure to China.
A rally in commodities from oil to copper helped the S&P 500 jump 1.3 percent Monday. Those trades largely reversed today on concern demand from China, the world’s biggest consumer of energy and metals, will slow and yuan weakness will erode the buying power of Chinese consumers. Similar worries about the country’s growth helped send the benchmark index down as much as 4 percent last month from its May record.
Source : Bloomberg