Global stocks sink after China index dives 7 percent

FILE -- American flags fly at the New York Stock Exchange on Wall Street, Monday, July 6, 2015. (AP Photo/Mark Lennihan) (AP)

U.S. stocks are opening 2016 on a grim note, dropping sharply after a plunge in China and declines in Europe.

The Dow Jones industrial average sank 347 points, or 2 percent, to 17,078 as of 9:35 a.m. Eastern time Monday.

The Standard & Poor's 500 index lost 37 points, or 1.8 percent, to 2,006. The Nasdaq composite gave up 112 points, or 2.2 percent, to 4,895.

Overseas markets fell even more. China's main index plunged nearly 7 percent, triggering an emergency trading suspension. The drop was caused by weak Chinese manufacturing data and escalating tensions in the Middle East.

European indexes fell between 2 and 3 percent.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.23 percent.
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