Global stocks sink after China index dives 7 percent

NEW YORK (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.

China’s stock market lurched lower again Monday, triggering “circuit breakers” that halted trading. The slump was the latest episode in months of turmoil for Chinese investors.

China’s market benchmark soared 150 percent between November 2014 and early June 2015, as cheerleading in the state press encouraged inexperienced investors into the market.

The Shanghai Composite Index hit its peak June 12 and then fell 30 percent. A panicked government slashed interest rates and bought shares to halt the slide.