MARKETS-STOCKS/USA CLOSE Wall St. turbulence returns as weak China data magnifies fear

Record ID: 140511

  • Title: MARKETS-STOCKS/USA CLOSE Wall St. turbulence returns as weak China data magnifies fear
  • Date: 1st September 2015
  • Summary: OFF THE COAST OF VERACRUZ, MEXICO (FILE) (REUTERS) VARIOUS OF AERIAL VIEW OF OIL RIG VARIOUS OF EMPLOYEES WORKING AT RIG
  • Embargoed: 16th September 2015 13:00
  • Keywords:
  • Location: Mexico
  • Country: Mexico
  • Topics: General
  • Reuters ID: LVABKQD7PIYEWSJ7R2YAANQMMKBG
  • Aspect Ratio: 16:9
  • Story Text: Turmoil returned to Wall Street on Tuesday (September 1) after a brief rest, with renewed concerns about China's economy pushing major indexes down almost 3 percent and intensifying fears of a long-term selloff.
    The S&P 500 is now 10 percent lower than its May record high, with the prospect of slowing global growth and an impending U.S. interest rate hike curtailing a robust bull run that saw the index gain over 200 percent from the depths of the financial crisis in 2009.
    Tuesday's was the S&P's worst drop since Aug. 24, when it slumped 3.94 percent after three days of increasingly volatile losses.
    China's manufacturing sector shrank at its fastest pace in three years in August. Other data showed the pace of growth in the U.S. manufacturing sector slowed last month to its weakest in over two years.
    Adding to the nervousness, International Monetary Fund head Christine Lagarde said global economic growth was now likely to be weaker than had been expected just a few months ago.
    The weak data pushed oil prices down more than 7 percent, ending three days of gains, and also reduced some investors' expectations that the Federal Reserve would raise interest rates this month.
    The S&P energy index fell 3.7 percent, with Exxon down 4.19 percent.
    The financial index dropped 3.5 percent, with Citigroup down 4.75 percent.
    The CBOE Volatility index, known as Wall Street's "fear gauge", was up 10.45 percent at 31.40, above its long-term average of 20. The index had spiked to 53.29 last Monday.
    The Dow Jones industrial average fell 2.84 percent to end at 16,058.35 while the S&P 500 lost 2.96 percent to 1,913.85 points.
    The Nasdaq Composite dropped 2.94 percent to 4,636.11.
    For the year, the Dow is now down 9.9 percent while the S&P is 7.0 percent lower and the Nasdaq is off 9.9 percent.
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