Stocks fell around the world, with U.S. equities headed for their lowest since August, and bonds jumped as oil’s plunge past $30 sent markets reeling. Treasuries extended gains as U.S. data did little to calm nerves frayed by concern that global growth is slowing.

The Dow Jones Industrial Average sank more than 300 points, European stocks were poised to enter a bear market and the Shanghai Composite Index wiped out gains from an unprecedented state-rescue campaign. Oil plunged past $30 a barrel as Iran prepares to export into a global supply glut. A measure of default risk for junk-rated U.S. companies surged to the highest three years. Yields on 10-year Treasury notes fell under 2 percent for the first time since October, while the dollar extended its longest rally since July. Gold surged with the yen on haven demand.

Crude’s drop to a 12-year low is sending shock waves around the world at the same time concern is mounting that China’s policy interventions will fall short of stoking growth in the world’s second-largest economy. Energy firms are laying off workers and currency markets from commodity-producing countries are in turmoil. The slump is also denting the outlook for inflation around the world, causing traders to curb bets on how far the Federal Reserve will raise interest rates this year.

“Markets have to go through several stages and right now they’re just holding their head and crying,” Krishna Memani, chief investment officer at Oppenheimer Funds Inc. in New York, said by phone. “The drama and issue overnight is more related to oil prices not finding a floor. If it was just China and everything else was OK, we’d see through that. But when China is down and oil drops everyday, the market recognizes it has substantial issues.”

Read the article “U.S. Stocks Plunge, Oil Falls Below $30 a Barrel” on bloomberg.com.