Stocks in the U.S. plunged for a third consecutive trading day, with the Dow Jones Industrial Average tumbling more than 1,200 points, amid growing fears of an economic downturn sparked by a sharp slowdown in hiring and weakening consumer spending.
The S&P 500 slid 129 points, or 2.4%, to 5,217 in early afternoon trading, while the tech-heavy Nasdaq Composite sank 2.9%. Investors are fleeing the Big Tech names that until recently had powered the U.S. market higher: Apple shed 4.2% while Meta fell about 2% in afternoon trading. Chipmaker Nvidia tumbled 5.6%.
The Dow Jones Industrial Average tumbled 1,238 points in early trade but pared some of those losses by early afternoon, when it was down 800 points, or 2%, as of 12:05 p.m. Eastern Time.
The markets regained some of their early losses as Wall Street digested Monday data from the Institute for Supply Management (ISM) Services index, which showed that service employment picked up in July.
“The details of the ISM report were encouraging, with business activity, new orders and employment all rebounding markedly in July,” Oxford Economics said in a Monday research note. The report “aligns with our view of an economy in transition rather than one on the brink of collapse.”
What’s driving down stocks
Stocks began losing ground on Thursday after weak reports on manufacturing and construction, which stoked fears the U.S. economy may finally be buckling under the pressure of high…
