Stocks drop again to worst loss in weeks on economy worries
NEW YORK (AP) — Stocks tumbled again on Wednesday as worries about a weakening global economy boomeranged around the world.
For a second straight day, the S&P 500 dropped to its worst loss in five weeks. The latest wave of selling came after a report showed hiring by U.S. companies slowed more than economists expected last month, with mining and manufacturing particularly weak. It added to worries that shook markets a day earlier, when a reading on U.S. manufacturing showed the sharpest contraction in a decade.
The reports underscored that President Donald Trump’s trade war with China is continuing to drag on exports and raised the worry that the weakness could spill over into other areas of the economy. The concerns sent markets around the world reeling, with losses sweeping from the United States on Tuesday into Asia and through Europe on Wednesday.
The S&P 500 lost 52.64 points, or 1.8%, to 2,887.61. It was the first back-to-back loss for the index of more than 1% since late last year, when fears about a possible recession seized markets.
The Dow Jones Industrial Average fell 494.42, or 1.9%, to 26,078.62, and the Nasdaq composite dropped 123.44, or 1.6%, to 7,785.25.
Adding to the market’s uncertainty was a ruling by the World Trade Organization that cleared the United States to impose tariffs on up to $7.5 billion of goods from the European Union to make up for illegal subsidies given to plane-maker Airbus. The Trump administration said it would begin them on Oct. 18.
Even investors who are optimistic that the U.S. economy isn’t facing an imminent recession were struck by Tuesday’s surprisingly weak manufacturing report.
“Manufacturing, that data point does give me further pause,” said Adrian Helfert, director of multi-asset portfolios at...