The Dow Jones Industrial Average saw a triple-digit tumble Monday, helping lead a sharp drop in the main U.S. indexes sparked by a Chinese stock-market rout.

Investors sold risky assets such as equities and commodities and piled into havens such as Treasurys and gold.

The Dow Jones Industrial Average fell 146 points, or 0.8%, to 17,420, with all of its 30 components trading lower.

A dramatic slide overnight in the Shanghai Composite , which closed 8.5% lower for its biggest one-day slide since February 2007 (http://www.marketwatch.com/story/shanghai-plunges-8-on-worries-beijing-is-ratcheting-down-inflows-2015-07-27), was the main reason for the market’s downbeat start. China watchers note the rout in Shanghai has prompted Beijing to try to reassure investors again (http://www.marketwatch.com/story/what-china-watchers-are-saying-about-shanghais-ugly-selloff-2015-07-27).

European stocks also sold off, with the main benchmark, the Stoxx Europe 600, down 2.2%.

The main U.S. indexes added to sizable losses from last week, when stocks sold off following some disappointing earnings and precipitous declines in commodity markets. On Monday, the S&P 500 dropped 15 points, or 0.7%, to 2,065. Energy and financial stocks led the losses.

The Nasdaq Composite was down 37 points, or 0.7%, to 5,065.

Market reaction to better-than-expected durable-goods orders also was negative, as investors continued to view each data-point as a factor in the Federal Reserve’s decision about the timing and pace of interest rate hikes.

What strategists are saying: Brian Fenske, head of sales trading at ITG, said a plunge of that size in any market will erode investor confidence, referring to China.

“When any index falls 8.5%, it means there are many individual stocks that are down 20%-30%. And this morning, investors are concerned that a drop in China’s stock market may spill over to consumer confidence there,” Fenske said.

Apart from macro headlines, investors were worried about technical levels on the main indexes, as the S&P 500 is now approaching a key technical level of 200-day moving average at 2,064. The Russell 2000 breached its 200-day moving average on Monday, after falling more than 1% to 1,212.91.

“The S&P 500 last week failed to break above its May all-time high, and the benchmark now is nearing support near the 2,044 level,” said Katie Stockton, BTIG’s chief technical strategist, in a note Sunday. But she hasn’t turned bearish.

“We think the propensity of investors to believe that each pullback is the beginning of something much worse is actually healthy, and generally speaking, we view pullbacks as opportunities to add exposure to stocks closer to support,” Stockton wrote.”

The fact that the Nasdaq Composite has been taken higher by only six companies, hasn’t escaped traders’ notice,” Fenske said.

Economic reports: June durable-goods orders rose 3.4%, exceeding analysts’ expectations. However, business investments and shipments remained soft.

Investors this week are getting ready for the closely watched Federal Reserve meeting on Tuesday and Wednesday, waiting for clues on the timing of a rate rise. See: MarketWatch’s Fed meeting preview (http://www.marketwatch.com/story/fed-seen-staying-mum-but-second-quarter-gdp-report-pencils-out-as-game-changer-2015-07-26)

Movers & Shakers: Mylan NV (MYL) shares tumbled 14% in premarket action after Teva Pharmaceuticals Industries Ltd. (TEVA) said it has withdrawn its buyout offer for the maker of generic drugs. Teva announced Monday that it is instead planning to buy Allergan PLC’s (AGN) generics business for $40.5 billion (http://www.marketwatch.com/story/teva-buying-allergan-generics-for-405-billion-drops-mylan-bid-2015-07-27).