U.S. Stocks plunged throughout Monday’s trading session, following the Standard & poor’s worst quarterly slump since October 2008, as speculation European policy makers may fail to solve Europe’s looming debt crisis and avoid the risk of a possible Greek debt default overshadowed better than forecasted manufacturing and construction data from the U.S economy.
Earlier on Monday, the Institute for Supply Management showed that manufacturing activities expanded at faster pace than forecasted in September topping both the prior and forecasted estimates; in addition the U.S. Commerce Department signaled spending of several kinds of constructions have increased beyond expectations in August, helped cool growing fears about a global economic slowdown and trigger gains among the shares at early trading this morning.
Meanwhile, financials dropped the most among 10 groups in the Standard & Poor’s 500 Index, where we saw Bank of America Corp plunging nearly 0.5 percent, following declines among European lenders.
Alcoa Inc slipped 5.07 percent, amid ongoing concerns of a slower demand on aluminum;, while LAS Vegas Sands Corp lost 2.11 percent due to fears demand for gambling may dampen after Macau Casino Operators tumbled.
Citigroup Inc tumbled 6.29 percent, as the lender could be facing penalties since its Japanese retail banking unit may have breached regulations.
On the other hand, Hewlett-Packard Co and 3M Co rallied 0.18 percent and 0.20 percent respectively, leading gains among companies most-tied to the economic growth. Yahoo! Inc soared 2.58 percent, following news about a possible takeover from Alibaba Group Holding Ltd.
The Dollar index which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose from today's opening level of 79.08 to currently trade at 79.24 recording its highest level at 79.36 and its lowest at 78.79.
Gold prices surged to reach $1651.40 since the opening level of $1628.79. Oil picked up to reach $78.85 after opening at $78.80 per barrel.
As for stocks, the most sectors that shed points the most leading the decline in the DJIA were the Industrials, Oil & Gas and Consumer Goods shares respectively, while in the S&P 500 index most dropping sectors were the Financials, Health Care and Oil & Gas shares respectively.
The Dow Jones Industrial Average traded lower by 135.58 points or 1.24 percent at 13:04 New York time reaching 10777.80 levels, while the S&P 500 index traded at 1114.52 as it dropped by 16.90 points or 1.49 percent, meanwhile the NASDAQ Composite index declined 43.51 points or 1.80% to trade at 2371.89 levels.