Dow Down 276 Over Fresh Concerns on China

The Dow had briefly plunged 450, before a rebound that avoided one of the worst opening days ever

U.S. stocks traded sharply lower Monday, the first day of trading for 2016, weighed by renewed concerns of negative impact from slowdown in China and increased tensions in the Middle East.

The Dow Jones Industrial Average closed down 276 points, or 1.58 percent, ending at 17,149 points at the closing bell. Earlier, it had briefly fallen more than 450 points before making a slight recovery – if those losses held, they would have accounted the worst opening day since 1932.

The Standard & Poor's 500 and Nasdaq composite both took a hit Monday, with the former down 2.5 percent, and the latter down more than 3 percent.

"A lot of it has to do with China and a lot of it is overdone," said Art Hogan, chief market strategist at Wunderlich Securities. "The China PMI hasn't changed much. It's not unusual to have an outsized reaction when you've got a base case that 2016 could be a tough year." 

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