Dramatic headlines on China's stock market and economic slowdown are a negative weight but aren't likely to push U.S. stocks into a correction, analysts say. (Tweet This)
The more than 10 percent plunge in the Shanghai Composite this week has put pressure on U.S. equities though they were mixed Tuesday, after a selloff Monday. But whether it's the 5 percent intraday swings in Chinese stocks or disappointing economic reports, analysts say the turbulence is just part of growing pains for the Asian giant as it progresses towards a more consumer-oriented system.
"There has never been a single instance of China triggering a U.S. bear market," Thomas Lee of Fundstrat Global Advisors said in a note Tuesday. He pointed out that the Shanghai Composite spends 63 percent of months in a bear market since 1990 while the U.S. is in a bull market 81 percent of the time.