Dow Closes Down 250 points, Posts Worst Performance in Six Weeks as Manufacturing, Trade Concerns Weigh
Tuesday, 3 December 2019 04:12 WIB |
MARKET UPDATE |SahamASS & P 500DOW JONES
U.S. stocks posted their worst single-day performance since mid-October on Monday, after a worse-than-expected report on the U.S. manufacturing sector and concerns about U.S. trade relations weighed on investor sentiment.
The Dow Jones Industrial Average fell 263 points, or 0.9% to about 27,787 and the S&P 500 index closed roughly 27 points lower, or 0.9% to 3,114, according to preliminary figures. The Nasdaq Composite index retreated 97 points, or 1.1%, to end the session around 8,567.
The Institute for Supply Management's purchasing managers index for the U.S. manufacturing sector came in at 48.1% for November, below economists forecasts of a 49.2% reading, according to a MarketWatch poll and below the 48.3% reading from October. Any reading below 50% indicates worsening conditions. The report reflected ongoing weakness in the manufacturing sector that analysts have blamed on tit-for-tat tariff increases between the U.S. and China over the past several quarters. The data were released amid ongoing negotiations for a "phase-one" trade deal that promises to create more certainty over trade policy going forward, but recent news reports have suggested that the talks could bleed into next year. Commerce Secretary Wilbur Ross said Monday that President Trump is prepared to levy more duties on Chinese goods in the absence of a trade deal, with 15% tariffs on $160 billion in imports set to be implemented on Dec. 15.
Source : Marketwatch