VIDEO: Explaining the Dow's Big Monday Drop

U.S. stock markets plunged in early trading following a big drop in Chinese stocks.

The Dow Jones industrial average fell more than 1,000 points and the Standard & Poor's 500 index fell into correction territory - that's Wall Street jargon for a drop of 10 percent or more from a recent peak.

Treasuries surged as investors bought less risky assets.