(MENAFN- ecPulse)
U.S. stocks dropped sharply Wednesday for a second session as data on U.S. private-sector employment prompted fears on the government`s monthly non-farm payrolls report due on Friday.
Stock indexes remained largely lower after the release of the Fed’s so-called Beige Book, which found the U.S. economy to be still growing at a “modest to moderate” pace.
U.S. companies added 135,000 jobs in May, according to the ADP employer services. The figures came below forecasts that called for an increase of 165,000.
Revised government figures showed productivity rising 0.5% in the January-to-March period, and hourly compensation falling 3.8%. Wednesday’s data came ahead of Friday’s nonfarm-payrolls report, and added to the view that a soft labor market would extend the time frame before the Federal Reserve begins tapering its bond purchases.
Investors credit uncertainty over any future Fed moves as the main driving force in markets over the past two weeks. After stocks climbed steadily higher this year on the back of better-than-expected economic data, investors began weighing the likely effects of the Fed potentially tapering its bond purchases.
Apple Inc. shares shed 0.9% after the International Trade Commission found the iPhone maker infringed on a Samsung Electronics Co. patent, with Apple facing a possible import ban on some products.
General Motors Co. fell 2.7% after the U.S. Treasury said it would sell 30 million more shares of the car manufacturer’s common stock.
All three benchmark indexes at one point fell more than 1 percent.
The Standard & Poor’s 500 Index dropped 22.48 points or 1.38% to close at 1608.90 levels. The index reached the highest point at 1629.31 and the lowest point at 1607.09.
In its worst session in over a month, the Dow Jones Industrial Average index dropped 216.95 points or 1.43% to close at 14960.59 levels, the index reached the highest point at 15168.63 and the lowest point at 14945.57. By closing, all 30 shares were lower.
The NASDAQ Composite Index slipped 43.78 points or 1.27% to close at 3401.48 levels, the index reached the highest point at 3446.16 and the lowest point at 3397.85.
The Dollar Index, which tracks the performance of the U.S. dollar against a basket of other major currencies dropped to 82.57 from an opening at 82.88, after hitting a high of 82.91, and a low of 82.52.
Gold closed at $1401.84, above its opening levels at $1401.60, after hitting a high of $1402.61, and a low of $1401.47. Crude oil futures were unchanged at to $93.76, from an opening at $93.77, after having hit a high of $93.87 and a low of $92.75.
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