Dow Jones in Freefall for Third Straight Day Over Depressing Manufacturing, Services Numbers
AP Photo / Richard DrewBusiness17:16 03.10.2019(updated 18:13 03.10.2019) Get short URL13402Subscribe
US markets began a major slide on Tuesday morning after the release of a report on US manufacturing showing industrial activity falling to its lowest level since June 2009 in September.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite Index shed a combined 315 points and counting in early morning trading on Thursday, losing between 0.73 and 0.89 percent of their total market value as fallout over the release of the Institute for Supply Management’s report on US manfuacturing numbers continued to take its toll.
The losses were believed to be attributed to the release of a separate report by the ISM on Thursday, showing the non-manufacturing purchasing managers’ index (PMI) at 52.6 points in September, down from the 55 point reading economists were expecting, and sliding from a rating of 56.4 points in August. The rating is the slowest rate of growth in the index since 2016.
Just before the services data was released, the Dow, S&P and Nasdaq were at -17.16 points, +2.79 points, and +6.57 points, respectively.
Two days earlier, the ISM released its September 2019 report on US manufacturing, showing industrial activity down to 47.8 points, its worst showing since mid-2009 (any rating below 50 points indicates a contraction).
The report saw the three major indexes losing 470 points in Tuesday trading, with the Dow alone shedding over 343 points. The slide continued on Wednesday, with the three major indexes losing between 1.56 and 1.86 of their value.
The Dow is now believed to have lost 3.6 percent as of Thursday morning, erasing the entirety of its September gains, and then some. The S&P shed 4.5 percent, while the Nasdaq has lost 3.6 percent, since October 1.
Markets worldwide have been jittery this week, with industrial activity showing a decline in China and Europe as well, and markets concerned over political events including the Democratic Party’s impeachment inquiry into US President Donald Trump, and the US’s ongoing multitrillion dollar trade war with China. In Europe, concerns over Brexit and its impact on trade between the UK and the rest of Europe in the event of a hard Brexit at the end of October are impacting investor confidence. On Wednesday, European officials warned that Brussels would retaliate to new US duties on some $7.5 billion in European imports, which the US expects to begin implementing October 18.
Commenting on the market situation on Tuesday, President Trump urged Americans to judge his stock market performance from the day he was elected in November 2016, instead of his inauguration in January 2017.