US stocks fell today, with consumer staples leading the S&P 500 down to its third straight daily loss, as investors grew concerned about the pace of global economic growth.
The day’s losses were broad, with all ten primary S&P sectors down. Consumer staples were the weakest on the day, off 0.9 percent, while industrials lost 0.8 percent.
Wall Street’s losses tracked Europe’s 1.3 percent slump, after data showed a contraction in French business activity and slower growth in German manufacturing this month.
Unrest abroad added an element of caution to the market after the launch of U.S. air strikes in Syria against Islamic State fighters. The tension lifted crude oil prices 0.6 percent to $91.44 per barrel.
The Dow Jones industrial average fell 116.81 points, or 0.68 percent, to 17,055.87, the S&P 500 lost 11.52 points, or 0.58 percent, to 1,982.77 and the Nasdaq Composite dropped 19.00 points, or 0.42 percent, to 4,508.69.
The S&P 500 fell for a third consecutive session and closed below its 14-day moving average for a second straight day, a sign of weak near-term momentum.
The Russell 2000 fell 0.9 percent, and the small cap index’s 50-day moving average fell slightly under its 200-day moving average, a condition known as a «death cross,» which many investors view as indicating a coming bear market.
More than two-thirds of stocks traded on both the New York Stock Exchange and the Nasdaq closed lower on the day. About 5.78 billion shares traded on all US platforms, according to BATS exchange data, below the month-to-date average of about 6 billion.
European shares fell for a second day today, after data showed a contraction in French business activity and slower growth in German manufacturing this month.
Austria’s Raiffeisen Bank International, down 10 percent, led the declines on the FTSEurofirst 300 index . The bank said it might lose as much as 500 million euros ($645 million) this year because of problems in Ukraine and Hungary.
France’s CAC 40 share index underperformed after Markit data showed business activity in the euro zone’s second-biggest economy shrank this month as services weakened more than expected.
The CAC fell 1.9 percent and the FTSEurofirst 300 index closed down 1.3 percent weaker at 1,374.85 points, after falling to a one-week low. The pan-European index lost 0.6 percent on Monday.
Data for Germany showed the private sector grew for the 17th straight month in September, but manufacturing expanded at its slowest since June 2013. For the euro zone overall, business activity grew less than expected in September, as companies cut prices for the 30th month in a row.
AstraZeneca and Shire fell 3.6 percent and 2.5 percent respectively, while the STOXX Europe 600 Healthcare index dropped 1.3 percent.
Supermarket retailers fell after data from Kantar Worldpanel showed Britain’s grocery market grew at its slowest rate for more than 20 years over the last 12 weeks.
Tesco fell 4.2 percent to its lowest in more than a decade, after a drop in the previous session when the world’s No. 3 retailer cut its profit forecast for the third time in two months. Sainsbury’s was down 5.4 percent.
On the positive side, Norway’s Yara, the world’s biggest nitrate fertiliser maker, rose 3.9 percent, making it the top gainer on the FTSEurofirst 300. Yara said it is in talks with Chicago-based CF Industries about a merger that could create a $27 billion global fertilizer producer.
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