US stocks resume sell-off on weaker data, dim outlook

New York, Sep. 24 (IANS): US stocks saw the return of heavy sell-off amid weakening of macroeconomic indicators and overshadowed recovery outlook.

On Wednesday, the Dow Jones Industrial Average lost 525.05 points, or 1.92 per cent, to 26,763.13. The S&P 500 dropped 78.65 points, or 2.37 per cent, to 3,236.92. The Nasdaq Composite Index shed 330.65 points, or 3.02 per cent, to 10,632.99, Xinhua news agency reported.

All of the 11 sectors under S&P 500 suffered losses with energy, technology and materials sectors down 4.55 per cent, 3.21 per cent and 2.93 per cent, respectively.

US-listed Chinese companies most traded lower, with nine of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.

Flash US Composite Output Index dipped to 54.4 in September from 54.6 in the previous month, according to data issued by IHS Markit on Wednesday.

The month-on-month declines of flash Composite Purchasing Managers’ Index in September in the euro zone and the United Kingdom also weighed on market sentiment.

“The question now turns to whether the economy’s strong performance can be sustained into the fourth quarter… Risks therefore seem tilted to the downside for the coming months, as businesses await clarity with respect to both the path of the pandemic and the election,” said Chris Williamson, chief business economist at IHS Markit.

Fed Chairman Jerome Powell on Wednesday urged Congress to provide additional fiscal support for economic recovery.

However, the odds of a broader bipartisan breakthrough on renewed fiscal stimulus have narrowed as the US Senate gears up for a fractious Supreme Court nomination just weeks ahead of the presidential election, UBS Global Wealth Management’s Chief Investment Officer Mark Haefele said Wednesday in a note.