Investing.com - U.S. stocks were sharply lower on Monday, as ongoing concerns over the sovereign debt crisis in the euro zone and global growth worries continued to dampen investor confidence.
During early U.S. trade, the Dow Jones Industrial Average declined 1.04%, the S&P 500 index tumbled 1.06%, while the Nasdaq Composite index dropped 0.95%.
Sentiment weakened after data showed earlier manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009, while service sector activity declined to the lowest level in five months in April.
Meanwhile, markets were also jittery after a preliminary report showed that manufacturing activity in China remained in contraction territory in April for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Wal-Mart was one of the session’s top losers, with shares plunging 1.87% as the big-box retailer faces scrutiny regarding bribery allegations in Mexico.
The company could see years of regulatory scrutiny and some executives could eventually lose their jobs after the New York Times reported that the company stymied an internal investigation into extensive bribery at its Mexican subsidiary.
Kellogg’s also lost 4.33%, after the breakfast food and snack company warned that its full-year performance would be lower due to disappointing first-quarter performance.
Financial stocks added to losses as shares in Bank of America plummeted 3.47% and Citigroup tumbled 3.30%, while Goldman Sachs and JP Morgan dropped 1.66% and 1.57% respectively.
Elsewhere, Pfizer shares fell 0.71% after Nestle said it will acquire the U.S. company’s infant nutrition business for USD11.85 billion, beating out French rival Danone.
Also in corporate news, Beam Inc. tumbled 1.14% as the group was set to buy Pinnacle vodka and rum brand Calico Jack from White Rock Distilleries Inc. for around USD600 million in cash, according to the Wall Street Journal.
On the upside, shares in Ardea Biosciences surged 51.44% after AstraZeneca agreed to buy the U.S. biotech company for USD1.26 billion, giving it access to a new drug for treating gout patients, in AstraZeneca’s latest deal to try and bolster its drug pipeline.
Other stocks in focus included Xerox and Texas Instruments, set to announce results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.67%, France’s CAC 40 plunged 2.55%, Germany's DAX tumbled 3.09%, while Britain's FTSE 100 declined 1.89%.
During the Asian trading session, Hong Kong's Hang Seng Index fell 0.85%, while Japan’s Nikkei 225 Index eased down 0.15%.
Sentiment also weakened amid fresh concerns over political uncertainty in the euro zone, as investors mulled the implications of the collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.
During early U.S. trade, the Dow Jones Industrial Average declined 1.04%, the S&P 500 index tumbled 1.06%, while the Nasdaq Composite index dropped 0.95%.
Sentiment weakened after data showed earlier manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009, while service sector activity declined to the lowest level in five months in April.
Meanwhile, markets were also jittery after a preliminary report showed that manufacturing activity in China remained in contraction territory in April for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Wal-Mart was one of the session’s top losers, with shares plunging 1.87% as the big-box retailer faces scrutiny regarding bribery allegations in Mexico.
The company could see years of regulatory scrutiny and some executives could eventually lose their jobs after the New York Times reported that the company stymied an internal investigation into extensive bribery at its Mexican subsidiary.
Kellogg’s also lost 4.33%, after the breakfast food and snack company warned that its full-year performance would be lower due to disappointing first-quarter performance.
Financial stocks added to losses as shares in Bank of America plummeted 3.47% and Citigroup tumbled 3.30%, while Goldman Sachs and JP Morgan dropped 1.66% and 1.57% respectively.
Elsewhere, Pfizer shares fell 0.71% after Nestle said it will acquire the U.S. company’s infant nutrition business for USD11.85 billion, beating out French rival Danone.
Also in corporate news, Beam Inc. tumbled 1.14% as the group was set to buy Pinnacle vodka and rum brand Calico Jack from White Rock Distilleries Inc. for around USD600 million in cash, according to the Wall Street Journal.
On the upside, shares in Ardea Biosciences surged 51.44% after AstraZeneca agreed to buy the U.S. biotech company for USD1.26 billion, giving it access to a new drug for treating gout patients, in AstraZeneca’s latest deal to try and bolster its drug pipeline.
Other stocks in focus included Xerox and Texas Instruments, set to announce results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.67%, France’s CAC 40 plunged 2.55%, Germany's DAX tumbled 3.09%, while Britain's FTSE 100 declined 1.89%.
During the Asian trading session, Hong Kong's Hang Seng Index fell 0.85%, while Japan’s Nikkei 225 Index eased down 0.15%.
Sentiment also weakened amid fresh concerns over political uncertainty in the euro zone, as investors mulled the implications of the collapse of the Dutch government following failed budget negotiations and outcome of the first round of the French presidential election.