Deepening economic fears lead U.S. stocks to end sharply lower amid grinding trade wars
Wall Street stocks fell Wednesday after the lacklustre US data on employment deepened recession concerns in the midst of stifling trade conflicts.
The Dow Jones Industrial Average finished with a fall of over one per cent on the second day in a row of 26,078.62, off 1.9% or about 500 level.
The wide-ranging S&P 500 fell to 2887.61 by 1.8% while the high-tech Nasdaq Composite Index declined by 1.6% to 7785.25.
In September, the payroll company ADP reported that the US added 135,000 private-sector jobs. The results were below forecasts and increased anxiety after Tuesday data showing the worst conditions in manufacturing since the Great Recession.
Specific reasons behind the decline include fresh fears about the Brexit no-deal after UK Prime Minister Boris Johnson’s latest plan had timidly responded in Brussels and concerned over potential new United States tariffs on Europe after an Airbus dumping vote from the World Trade Organisation, which cleared the US to impose new fees.
Soon after Wednesday opened, top U.S. trade officials announced the European Union new punitive tariffs effective October 18.
Analysts have cited a fall in the United States. Treasury returns are often considered a prelude to an economic slowdown.
The downturn in the economy represents “intensifying recessionary concerns,” Gorilla Trades analyst Ken Berman said, but noted that the ADP Jobs Report still has seen progress in many sectors.
Market declines were severe, and all eleven parts of the S&P 500 ended red, and virtually the entire blue-chip Dow index dropped.
Airlines’ shares are particularly weak with more than four per cent of Delta Air Lines, United Airlines and American airlines.
General Motors dropped 4.0% after the 3rd quarter after the consultant failed to anticipate a strike among United Auto Workers in its second month. Amid auto sales results, Fiat Chrysler and Ford both dropped.