NEW YORK — The Dow plunged as much as 1,000 points at the open on Monday — but it rebounded a bit and closed 588.47 points down at 4 p.m, representing the worst one-day loss since August 2011.

After recovering from those initial scary losses, the final drop was 3.58 percent.

Global fears about China’s economic slowdown are shaking stock markets around the world for a second week in a row. The wave of selling knocked the S&P 500 into correction mode for the first time since 2011.

Within minutes, the Dow plummeted as much as 1,089 points. That is the largest point loss ever during a trading day, surpassing the Flash Crash of 2010.

“We have not seen this level of full-blown panic in markets for quite some time,” said Peter Kenny, chief market strategist at Clear Pool Group, a financial technology firm.

However, Monday was not that bad compared to “Black Monday” in 1987. Yes, there’s a lot of panic, but the Dow tumbled a whopping 22.6 percent on October 19, 1987. On Monday, the Dow was only down about 6.6 percent at its worst point. If this were a true “Black Monday” like what happened in 1987, the Dow would have fallen 3,700 points.

While we are into correction territory, it’s not unexpected. At the moment, the Dow, S&P 500 and Nasdaq indexes — America’s “Big 3” — are all in correction mode. They peaked in the spring and have lost over 10 percent since then, meaning a correction. However, a lot of experts say America was overdue for a correction. They are natural — kind of like needing to tap the breaks on a bike or car sometimes.

It all started with Shanghai’s 8.5 percent drop

The dramatic selling began overseas. China’s Shanghai Composite plummeted 8.5 percent, wiping out all of its massive gains so far this year. Not only has an apparent bubble in Chinese equities popped, but the country’s economy may be slowing much faster than feared.

Last week’s big selloff gathered serious momentum after China said its manufacturing activity — a critical metric on growth — tumbled to a six-year low in July.

Fears of China contagion

China is the world’s second-biggest economy. Its explosive growth in the last two decades has been the engine for the global economy. Its enormous appetite for raw materials like oil, copper and iron ore fueled global growth, especially in emerging markets like Brazil that are rich in natural resources.

But that story has been completely derailed by China’s economic slowdown. Just how much China slows down matters greatly to investors around the world.

All U.S. stock market indexes are in correction

Fears about the health of China’s economy have ratcheted up to the point that the S&P 500, made up the largest U.S. companies, is now sitting in “correction” territory — a 10 percent decline from a recent peak.

Both the Dow and Nasdaq fell into correction mode on Friday, the first since 2011.

But stocks are up about 200 percent since crisis

It’s worth remembering that these steep losses come after a tremendous bull run for stocks.

The S&P 500 has skyrocketed 220 percent since bottoming out at 666 during the Great Recession in March 2009. At its lows on Monday, it was at 1,866.86.

Mohamed El-Erian, chief economic adviser at Allianz, believes longer term the correction will be a healthy thing for the market.

“It will bring financial markets closer to what’s justified by fundamentals. Therefore, there will be less of a risk of a financial collapse down the road,” El-Erian told CNN.

Oil continues downward march too

Crude oil plunged below $39 a barrel on Monday for the first time since 2009. A global economic slowdown is eating into demand for oil at a time when supplies remain extremely elevated.

Energy is still a substantial part of the U.S. economy and stock market. When oil prices slide this much, it means a lot of companies aren’t making money anymore. That hurts U.S. companies and many countries that depend heavily on profits from selling oil.

10-year yield below 2 percent

Another sign of fear: The 10-year Treasury yield slid below 2 percent on Monday. That’s the lowest level since April and a sign that investors are fleeing to the relative safety of American government debt.

It also signals that Wall Street believes the Federal Reserve may have to delay its expected interest rate hike from September until later in the year or even 2016.

Will the bull market survive?

Ed Yardeni, president of Yardeni Research, believes the selloff has created an opportunity for investors “with the stomach to jump in.”

“I think we’ll see the markets make a comeback. The fundamentals of the U.S. economy remain good, especially compared with everybody else,” Yardeni said.

That would mean the bull market that began more than six years ago will survive. The S&P 500 would need to close below 1,708 to be classified a bear market, which is defined as a 20 percent decline from a previous high. Currently, the S&P is at 1,934. Germany, on the other hand, tumbled into a bear market on Monday.

Bear market for Apple

Many of America’s favorite stocks are now in “bear market” territory, including Disney, Tesla and even Apple.

Apple CEO Tim Cook sought to ease investor anxiety. Cook told CNBC that Apple has experienced “strong growth” in China over the last two months. He said iPhone activations have actually “accelerated” in recent weeks and China continues to represent “unprecedented opportunity over the long term.”

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