S&P 500 closes lower Wednesday after two days of strong gains; European markets close lower as rally fades; PMI data points to recession
U.S. stocks fell on Wednesday as Wall Street failed to hold on to the sharp gains from the last two sessions.
The Dow Jones Industrial Average lost 42.45 points, or 0.14%, to 30,273.87. Earlier in the day, it was down 429.88 points. The S&P 500 lost 0.20% to close at 3,783.28, and the Nasdaq Composite slid 0.25% to 11,148.64.
On Wednesday, yields rose sharply, with the rate on the benchmark 10-year Treasury surpassing 3.7% after briefly dipping below 3.6% in the previous session. That put pressure on stocks for much of the day.
The pan-European Stoxx 600 provisionally ended the day 1% lower. Retail stocks dropped 3.2% to lead losses as the majority of sectors and all major bourses closed in negative territory.
Euro zone business activity fell further than expected last month, increasing the likelihood of a recession in the 19-member common currency bloc.
S&P Global’s final euro zone composite PMI (purchasing managers’ index), seen as a reliable gauge of economic health, dropped to a 20-month low of 48.1 in September from 48.9 in August, short of a preliminary estimate of 48.2. Any reading below 50 indicates contraction.
Source: CNBC, Investing.com