INSUBCONTINENT EXCLUSIVE:
Wall Street's main indexes extended losses on Friday after the United States joined the euro zone in reporting weak manufacturing activity
last month, fueling fears of a slowing global economy.
U.S
manufacturing sector Flash Purchasing Managers' Index (PMI) came in at 52.5 in March, well below the estimates of 53.6, according to
economists polled by Reuters.
German manufacturing contracted further in March, showing its lowest reading since June 2013, while factory
activity across the euro zone looked equally dismal.
"Today's economic numbers indicate the strong relationship that China has with Europe
China has been slowing down, especially in ordering industrial products and automobiles, and that is going to hit Germany
out-proportionally," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh
"Moreover, the Fed's action on
Wednesday shows that they don't believe the economies of the world are strong enough to continue their raising program."
The Federal Reserve
on Wednesday abandoned projections for any interest rate hikes this year, as policymakers see a U.S
economy that is rapidly losing momentum.
The spread between three-month Treasury bills and 10-year note yields inverted for the first time
An inverted yield curve is widely understood to be a leading indicator of recession.
Financial stocks, which looked set to extend their
three-day decline, fell 2.11 percent, while the banking sector declined 2.70 percent.
Adding to the uncertainty were concerns over trade, as
trade delegates head to Beijing next week
President Donald Trump said that a final agreement with China "will probably happen."
Chipmakers, which get a huge chunk of their revenue
The Philadelphia chip index was down 1.47 percent, while the broader technology sector declined 1.10 percent.
Hopes of a trade deal and a
dovish Fed have sparked a rally in stocks this year, putting the SP 500 index 3.7 percent away from its closing record high hit in
ET the Dow Jones Industrial Average was down 283.66 points, or 1.09 percent, at 25,678.85
The SP 500 was down 28.50 points, or 1.00 percent, at 2,826.38 and the Nasdaq Composite was down 89.99 points, or 1.15 percent, at
7,748.97.
Only the defensive utilities, real estate and consumer staples sectors were trading higher.
Nike Inc dropped 4.6 percent after the
sportswear maker's quarterly revenue failed to beat Wall Street estimates
Its partner Foot Locker Inc fell 2.4 percent
Declining issues outnumbered advancers for a 3.05-to-1 ratio on the NYSE and for a 3.60-to-1
ratio on the Nasdaq.
The SP index recorded 41 new 52-week highs and two new lows, while the Nasdaq recorded 18 new highs and 23 new lows.
