Readings on sales of new homes and consumer confidence came in below forecasts.
Richard Drew/AP
US stocks plummeted on Tuesday as weak economic data sparked fears of a recession, adding to worries about rates and a government shutdown.
The Consumer Confidence Index slid to 103, falling under August's 108.7 and missing views for 105.5, and a gauge of expectations reached a level usually associated with recessions, Conference Board reported.
Meanwhile, new home sales in fell 8.7% in August from July, missing expectations. At the same time, home prices continued to ascend, with the Case-Shiller index growing 1% in July compared to a year ago.
"So far, higher interest rates haven't made a dent in housing prices this year. And it doesn't appear that trend is anywhere close to being broken," Jamie Cox, Managing Partner for Harris Financial Group said.
Before this, investors were already grappling with uncertainty, as the Federal Reserve indicated that another interest rate could come up before the year end. Meanwhile, a government shutdown looks increasingly likely, which would put immediate downside pressure on markets.
Here's where US indexes stood shortly after the 4:00 p.m. closing bell on Tuesday:
Here's what else is going on today:
In commodities, bonds, and crypto: