US Stocks Endure Largest Monthly Decline in Three Years

August turned out to be a tough time for investors. Worries about China’s slowing economy and uncertainties about when the Federal Reserve might raise interest rates caused a notable drop in stock values throughout the month. Even though there was some recovery, the S&P 500 index ended August down by 6.3%, hitting its lowest point since May 2012.

The decline started mid-month when China unexpectedly devalued its currency to boost its economy. However, this move seemed to backfire. Investors worldwide saw it as a warning sign of slower-than-expected growth in the world’s second-biggest economy. Combined with another sharp fall in Chinese stocks, this sparked concerns across Asia, Europe, and the Americas.