(MENAFN– ecpulse)
U.S. stocks plummeted throughout the day till closing following the worst January in 4 years for the S&P 500, with the Dow Jones falling over 150 points after a drop of over 5% in January, as data continues to show global factory conditions are declining.
-The Dow Jones Industrial Average fell 2.08% to 15372.80
-The S&P 500 Index fell 2.28% to 1741.89
-The NASDAQ Composite fell 2.61% to 3996.96 . As of 16:15 p.m. ET
The S&P 500 is down 3.6% from its January 15 record-high close of 1848.38, as the Federal Reserve trimmed its bond-buying program for the second time in as many months and emerging-market currencies tumbled amid signs growth was slowing in China.
China’s official Purchasing Managers’ Index decreased to a six-month low in January as output and orders slowed.
In the U.S., the Institute for Supply Management’s factory index decreased to 51.3 in January from 56.5 the prior month, the Tempe, Arizona-based group’s report showed today. Readings above 50 indicate expansion.
Treasury Secretary Jacob J. Lew today said the U.S. risks breaching the federal debt limit by the end of this month and called on Congress to raise it immediately to sustain economic momentum.
The debt ceiling was suspended through February 7 under an agreement between President Barack Obama and congressional Republicans in October.
The Treasury Department uses so-called extraordinary measures, or accounting maneuvers, stay under the ceiling.
The yield on the 10-year Treasury note inched up to 2.671% after hitting a three-month low on Friday. Gold futures gained 0.9% to $1,251 an ounce, while crude-oil futures eased slightly to $97.44 a barrel. The dollar lost some ground against the euro and the yen.
Corporate earnings
Telecommunications stocks dropped after AT&T Inc. introduced new service plans, the latest in an escalating price war among wireless carriers.
Herbalife rose after the provider of weight-loss supplements said it would repurchase shares.
Jos. A. Bank Clothiers slumped after The Wall Street Journal reported that the apparel retailer has entered into talks to buy Eddie Bauer, as it looks to fend off a proposed takeover by Men`s Wearhouse.
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