U.S. stocks trade lower amid deepening fears over weakening global economy

0 Comment(s)Print E-mail Xinhua, January 4, 2019
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NEW YORK, Jan. 3 (Xinhua) -- U.S. stocks traded sharply lower on Thursday, following Apple's quarterly revenue forecast slash, weaker-than-expected economic readings, and further concerns over possible global economic slowdown.

At midday, the Dow Jones Industrial Average plunged 440.01 points, or 1.88 percent, to 22,906.23. The S&P 500 slumped 37.85 points, or 1.51 percent, to 2,472.18. The Nasdaq Composite Index was gravely down 121.64 points, or 1.82 percent, to 6,544.30.

Shares of Apple took a dive of more than 8 percent around midday, rebounding a bit from its lowest single day trough of more than 10 percent over the last six years.

Apple's earnings have highly depended on Asian markets, especially China, as the company has set up an developer community in China, which is among "the most innovative, creative and vibrant in the world," said a letter from Apple CEO Tim Cook.

The revenue forecast slash also boosted the U.S. dollar, posing headwinds for U.S. companies around the world.

Eight of the 11 primary S&P 500 sectors fell, with the information technology sector down more than 3.4 percent, leading the laggards. The industrial sector ranked the second with a drop of roughly 1.9 percent.

On the economic front, investors are digesting downbeat data relating to U.S. economy, fueling nervousness over ebbing economic activities in the new year.

The ISM manufacturing index dipped to 54.1 in December, its lowest level since November 2016, which was weaker than market expectations and down from 59.3 in November, according to a latest report.

The index, issued by the Institute for Supply Management (ISM), is widely considered as an indicator for the expansion pace of economic activity in the manufacturing sector. The U.S.-based ISM is the world's largest not-for-profit supply management association.

U.S. labor market remains teetering to maintain its strength with both rising weekly jobless claims and private payrolls.

The number of Americans applying for unemployment benefits reached 231,000 with a seasonally adusted increase of 10,000 for the week ending Dec. 29, said the Labor Department on Thursday.

Offsetting the worrying impact, private payrolls rose by 271,000 jobs in December, higher than the November increase of 157,000, according to the ADP National Employment Report on Thursday. Enditem

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