08:54 GMT03 August 2021
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    Earlier China published industrial output and retail sales growth data for November, which appeared to be lower than expected. With industrial output at 5.4 percent and 8.1 percent for retail sales, the Chinese economy has started to show signs of slowing, which has led to "global growth concerns" being reflected in global market indexes.

    Wall Street's three major indexes- S&P, Dow Jones and Nasdaq Composite have dropped 1.9%, 2% and 2.3% respectively, according to the Associated Press.

    The decline occurred after weak data from China and Europe stoked fears of a global economic slowdown. The low numbers coming from China have led to worries among investors regarding US growth.

    READ MORE: US Stocks Slump as Dow Falls Nearly 800

    "Weakness showing through in the Chinese economy in terms of the numbers that were reported as a result of the ongoing trade war was certainly a concern that bleeds into global growth concerns," said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.

    The numbers and the market's reaction have proven that the trade war between the United States and China is influencing the global economy, slowing its growth, the New York Times reported.

    "Market consensus has been that the next recession is probably in 2020 or beyond," Sameer Samana, senior global market strategist for Wells Fargo Investment Institute said.

    Now, Samana added, the market is "really testing that assumption and trying to figure out whether it's sooner."

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