Concern over China's slowing economy was once again a big theme this week as investors have been impacted by recent negative headlines coming out of the region. On Tuesday, it was reported that manufacturing activity in China had fallen to a 3-year low and many are concerned about how this may impact China's regional neighbors like South Korea and Austrailia. So while the larger cap, multinational-led indexes struggled this week, small cap stocks actually fared a bit better as they're less reliant on foreign customers. The Russell 2000 fell only 2.3% for the week and displayed some decent relative strength against its large cap counterparts.
Yesterday's losses were preceded by, and likely attributable to, an unexpectedly weak August jobs report. Per Reuters: