US close: Dow Jones plunges over 450 points on weak Chinese data
US stocks sank on Tuesday, as disappointing economic data from China weighed on sentiment on Wall Street.
Chevron Corp.
$165.89
10:59 26/04/24
Dollar Tree Inc
$121.72
10:59 26/04/24
Dow Jones I.A.
38,239.66
04:30 15/10/20
Marathon Oil Corp.
$27.77
10:59 26/04/24
Nasdaq 100
17,718.30
11:30 26/04/24
S&P 500
5,099.96
22:20 26/04/24
Transocean Partners Llc Common Units Representing Limited Liability Company Interests
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The Dow Jones Industrial Average suffered its third-biggest drop in the year, closing down 469.68 points to 16,058.35, while the S&P 500 and the Nasdaq fell 58 and 132 points respectively.
Chinese data disappoints
The official Chinese manufacturing sector purchasing managers' index fell to a three-year low of 49.7 in August from a print of 50 the month before, while the Caixin China manufacturing PMI hit a six-and-a-half year low of 47.3.
The Shanghai Composite ended down 1.2%, while the Hang Seng fell 2.2% and Japan’s Nikkei slumped 3.8%.
“Chinese markets have started the week just as the past three weeks have begun, with widespread selling and the expectation that the worst may not yet be over,” said IG’s market analyst Joshua Mahony.
“There are precious few signs that China is beginning to recover, and while PBoC action can provide a temporary reprieve, we are yet to see any evidence that it is doing any good to the economy.”
Elsewhere, European equity markets slid on Tuesday, kicking the new month off on a downbeat note as weak Chinese manufacturing data compounded worries about a slowdown in the world’s second-largest economy.
The dollar edged 0.38% higher against the pound, but it tumbled 0.67% and 1.10% against the euro and the yen respectively, while gold futures climbed 0.59% to $1,139.20.
Tuesday data
The Institute for Supply Management revealed its manufacturing index declined from 52.7% to 51.1% in August, falling below the 52.2% reading analysts had expected.
The sub-index monitoring new orders fell 4.8 points to 51.7%, the lowest since May 2013, while the employment gauge edged 1.5 points lower to 51.2%.
"The export index lost 0.5 points to 46.5%, an indication of the tougher conditions faced by US firms that are exposed to foreign markets," said analysts at Barclays.
"The weaker-than-expected headline reading and broad-based softness in the August manufacturing ISM suggest that the goods-producing sector is likely to remain subdued in the third quarter."
Meanwhile, according to the Commerce Department, outlays for construction projects rose 0.7% in July to a seasonally adjusted rate of $1.08trn, the highest level since May 2008 and in line with expectations.
June’s gain was revised upwardly to show a 0.7% jump compared to the 0.1% increase that had originally been reported.
In other economic news, the final Markit US PMI came in at 53.0 in August, slightly lower than the 53.8 figure reported in July.
Oil stocks under pressure
Oil prices sank, with West Texas Intermediate losing 9.02% to $45.13 a barrel, while Brent lost 9.95% to $49.25 a barrel.
In company news, oil-related stocks were among the biggest fallers, with Chevron falling 3.46%, while Transocean lost 3.65% and Marathon Oil slid 2.54%.
Meanwhile, chain discount Dollar Tree plunged 9.24% after its second quarter results missed estimates.
S&P 500 - Risers
Windstream Holdings Inc (WIN) $7.41 +3.06%
Cablevision Systems Corp. (CVC) $25.67 +1.99%
Sigma-Aldrich Corp. (SIAL) $139.45 +0.03%
Delta Airlines Inc. (DAL) $43.78 +0.00%
S&P 500 - Fallers
Reynolds American Inc. (RAI) $40.83 -51.25%
Peabody Energy Corp. (BTU) $2.21 -18.15%
Denbury Resources Inc. (DNR) $3.64 -16.13%
Avon Products Inc. (AVP) $4.74 -8.67%
Dollar Tree Inc (DLTR) $69.65 -8.67%
Freeport-McMoRan Inc (FCX) $9.76 -8.27%
Murphy Oil Corp. (MUR) $28.50 -8.06%
Joy Global Inc. (JOY) $22.30 -7.93%
Netflix Inc. (NFLX) $105.93 -7.91%
QEP Resources Inc (QEP) $13.05 -7.05%
Dow Jones I.A - Risers
Dow Jones I.A - Fallers
Apple Inc. (AAPL) $107.89 -4.32%
Exxon Mobil Corp. (XOM) $72.11 -4.16%
JP Morgan Chase & Co. (JPM) $61.51 -4.04%
Microsoft Corp. (MSFT) $41.82 -3.91%
General Electric Co. (GE) $23.90 -3.69%
American Express Co. (AXP) $74.01 -3.53%
International Business Machines Corp. (IBM) $142.71 -3.50%
Chevron Corp. (CVX) $78.22 -3.42%
Goldman Sachs Group Inc. (GS) $182.16 -3.41%
Visa Inc. (V) $69.13 -3.04%
Nasdaq 100 - Risers
Sigma-Aldrich Corp. (SIAL) $139.45 +0.03%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $69.65 -8.67%
Netflix Inc. (NFLX) $105.93 -7.91%
Wynn Resorts Ltd. (WYNN) $71.00 -5.40%
Avago Technologies Ltd. (AVGO) $119.37 -5.24%
Linear Technology Corp. (LLTC) $38.46 -4.52%
Apple Inc. (AAPL) $107.89 -4.32%
Vimpelcom Ltd Ads (VIP) $4.47 -4.28%
Maxim Integrated Products Inc. (MXIM) $32.23 -4.28%
Tesla Motors Inc (TSLA) $238.63 -4.19%
KLA-Tencor Corp. (KLAC) $48.03 -4.15%