Major Averages Slide Firmly Into The Red In Early Trading

(RTTNews) - Stocks have come under pressure in early trading on Monday, giving back some ground following the rebound seen last week. The major averages have slid firmly into negative territory, although selling pressure has waned since the open.

The early weakness on Wall Street partly reflects renewed concerns about the Chinese economy after a report from the Financial Times said the government has decided to abandon attempts to boost the stock market through large-scale share purchases.

Senior regulatory officials told the Financial Times China's leaders feel they mishandled their efforts to rescue the stock market.

Gold stocks have shown a significant move to the downside, dragging the NYSE Arca Gold Bugs Index down by 2.7 percent. The weakness in the sector comes as gold for December delivery is falling $5.40 to $1,128.60 an ounce.

Utilities, natural gas, and steel stocks are also seeing notable weakness, while most of the other major sectors are showing more modest moves.

In recent trading, the major averages have climbed well off their worst levels, but they remain in the red. The Dow is down 114.58 points or 0.7 percent at 16,528.43, the Nasdaq is down 29.00 points or 0.6 percent at 4,799.33 and the S&P 500 is down 12.56 points or 0.6 percent at 1,976.31.