Stocks have had a rough day in the final session of August. After a sell-off in China hurt investor sentiment in Europe, US equity markets opened lower and have failed to bounce halfway through the day. 

As of 1:30, the NASDAQ is off 1.39% to 2,000, followed by a 1.22% dip in the S&P 500 to 1,016, while the Dow trades 0.95% lower at 9,453. 

Bad as that may be, these losses are moderate relative to the 6.74% drop in China’s Shanghai Index, the CSI’s tumble ― fueled by concerns that lending from banks is softening ― was the biggest one-day sell-off in ten months.

In terms of data, it’s a big week ahead with manufacturing surveys and the monthly employment data as key features, but Monday is pretty tame. The only economic data released was a regional survey from the Midwest, and though it improved beyond expectations into growth mode, the news failed to help equities.

The Institute for Supply Management’s Chicago Business Barometer surged nearly 7 points to 50.0 in August, marking the third straight gain and hitting growth mode for the first time since last summer. Following upbeat reports from New York, Philadelphia, and Richmond, the survey is the fourth regional manufacturing release to top expectations this month, which should bolster forecasts for the nationwide ISM survey to be released tomorrow.

Prior to the Chicago results, forecasters were already looking for the nationwide ISM to come in at 50.5, which would be first sign of manufacturing growth since January 2008. Look for those forecasts to rise later in the day.

The Chicago survey of conditions in the Midwest showed the Production component posting a 10-point gain to 52.9, while New Orders were climbing at 52.5, and supplier deliveries moving upwards at 54.6.

“The details of the report were strong, with 7 of 7 sub-components advancing during the month,” noted Ian Pollick from TD Securities. 

Equities bounced up slightly from the report, but quickly fell back towards the lows of the day. This week’s biggest report is the monthly employment figures on Friday, and the regional report from Chicago failed to prompt any optimism on that front as the jobs component merely inched up to 38.7 from 35.3 ― indicating rapid losses.

That’s it for data today, but at 1pm the Treasury holds auctions for 3- and 6-month Bills. As of 10:30, the 10-year yield is stable at 3.45%.