- Title: Wall Street drops 2% on U.S. growth concerns
- Date: 2nd October 2019
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (OCTOBER 2, 2019) (REUTERS) (SOUNDBITE) (English) SAM STOVALL, CHIEF INVESTMENT STRATEGIST, CFRA RESEARCH, SAYING: "I think it's the fear that we could be looking at a potential global recession. We had the U.S. manufacturing data, whether it's the Dallas PMI, Chicago PMI or the most recent ISM numbers come out for manufacturing, indicating that things are in a shrinking, contracting mode. But I think investors have to remember manufacturing represents less than 10% of the U.S. economy, whereas the more important services number, which is expected to come out on October 3rd, showing a solid expansion mode is likely to help buoy stocks I think in the longer term."
- Embargoed: 16th October 2019 19:10
- Keywords: Dow Jones Industrial Average market drop dow drop stocks trading New York Stock Exchange
- Location: NEW YORK CITY, NEW YORK, UNITED STATES
- City: NEW YORK CITY, NEW YORK, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA002AZEP5ZH
- Aspect Ratio: 16:9
- Story Text:Wall Street's main indexes were on course for their sharpest drop in nearly six weeks on Wednesday (October 2) as a clutch of recent data, including a report on private sector hiring, suggested that trade tensions were taking a toll on the U.S. economy.
All the 11 major S&P sectors were in the red, with technology shares taking the biggest hit after tumbling 2.4%.
The ADP National Employment Report showed private payrolls growth in August was not as strong as previously estimated, and said "businesses have turned more cautious in their hiring," with small enterprises becoming "especially hesitant."
The report comes a day after U.S. factory activity contracted to its lowest level in more than a decade, triggering sharp falls in U.S. stocks indexes.
The recent set of weak data has shaken investor faith in the strength of the domestic economy, which had shown relative resilience in the face of slowing global growth and was a key reason for a rally in the benchmark index this year.
The S&P 500 and the Dow slipped below their 100-day moving averages for the first time in about a month on Wednesday, seen as a strong technical support level that could presage further losses.
At 13:02 ET (1702 GMT), the Dow Jones Industrial Average was down 563.16 points, or 2.12%, at 26,009.88 and the S&P 500 was down 61.04 points, or 2.08%, at 2,879.21. The Nasdaq Composite was down 152.02 points, or 1.92%, at 7,756.66.
The focus is now on the Labor Department's more comprehensive jobs report due on Friday (October 4) for further clues on the health of the U.S. economy.
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