NEW YORK – The stock market posted its biggest drop of the year on Monday.
A steep fall in commodity prices led to a widespread sell-off in the stock market, as worries about the global economy resurfaced. The Dow Jones industrial average dropped 265 points, its worst day this year.
The first trigger came from China. News that the world’s second-largest economy slowed unexpectedly pummeled oil, copper and other commodities. In the stock market, companies that produce oil and mine for metals fared the worst.
Oil prices hit their lowest level since mid-December, and gold plunged below $1,400 an ounce for the first time in two years as a sell-off in metals continued from last week.
It was the biggest drop for the stock market since Nov. 7 – Election Day – last year.