Global stocks sink after China index dives 7 percent

A woman takes a nap as a man looks at an electronic board displaying stock prices at a brokerage house in Beijing, Monday, Jan. 4, 2016. Shanghai’s stock index plunged nearly 7 percent on Monday, sparking a halt in trading of Chinese shares, after weak manufacturing data and Middle East tensions weighed on Asian markets. AP Photo/Andy Wong

NEW YORK — 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.