Skip to content

US STOCKS-Wall Street set to open lower as manufacturing shock drags on

US STOCKS-Wall Street set to open lower as manufacturing shock drags on
Wall Street's main indexes were set to open lower on Wednesday, after hitting a one-month low in the previous session, as a shock contraction in manufacturing activity confirmed the domestic economy was feeling the burn from a prolonged U.S.-China trade war. On the first day of the fourth quarter, the S&P 500 and Dow indexes recorded their sharpest slide in more than a month, wiping off their third-quarter gains.

Table of Contents

Wall Street is expected to open lower today after a significant drop in manufacturing activity, confirming the impact of the U.S.-China trade war on the domestic economy. The U.S. factory activity index hit its lowest level in over a decade, leading to a sharp slide in the S&P 500 and Dow indexes. The global manufacturing sector is now in a recession, according to Deutsche Bank strategist Jim Reid. The Federal Reserve, which cut interest rates in September, is expected to rely on economic data to determine future rate cuts. Other factors influencing investor sentiment include high-level trade negotiations between the U.S. and China and third-quarter corporate earnings reports. At 7:18 a.m. ET, Dow e-minis were down 0.6%, S&P 500 e-minis were down 0.57%, and Nasdaq 100 e-minis were down 0.68%. Some companies are already feeling the impact, with Activision Blizzard Inc and Monster Beverage Corp seeing drops in premarket trading, while Lennar Corp reported better-than-expected profit.

Source

Latest