Wall Street falls sharply after weak economic data from China. Shartia Brantley reports.
Wall Street opened sharply lower after weak data from China - heightening fears of a slowdown and sparking concerns over global growth. All three major indices were down about two percent just after the start of trading, but have recovered slightly. Investors were spooked by data that showed China's manufacturing shrank at its fastest pace in three years. Its services sector, a bright spot in the economy, also showing signs of cooling. This comes as investors digest mixed data on the U.S. economy. Factory activity fell in August, hitting a more than a two-year low. While construction spending has increased for eight straight months, with private construction spending hitting a seven-year high. Russell Investments' Stephen Wood. (SOUNDBITE) STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING: "There are a lot of things being priced into the market. China is grabbing the headlines from my perspective it's more the Chinese economy than Chinese equity markets that's meaningful. We've also got the U.S. economic story and perhaps more importantly, what's happening with the Federal Reserve. What is the Fed going to do with interest rates." The Federal Reserve is closing watching market volatility as it weighs the timing of an interest rate hike.