U.S. stocks on Wednesday posted another round of sharp losses in only the second session in October, sparked by a private-sector employment report that reflected a weakening domestic labor market.
Automatic Data Processing's weaker-than-expected payrolls figures combined with the weakest manufacturing report from the Institute of Supply Management on Tuesday, has intensified anxieties about a creeping economic slowdown that is washing up on U.S. shores.
The Dow Jones Industrial Average fell about 1.9%, the S&P 500 index declined 1.8% and the Nasdaq Composite index retreated 1.6%, based on preliminary levels.
All 11 sectors in the S&P 500 fell for consecutive days for the first time since December of 2018. Payroll firm ADP said that 135,000 private-sector jobs were created in September, below expectations and marking a significant decline in the pace of job growth.
Auto stocks were also hit hard after Ford Motor Co. reported vehicle sales fell 5.1% in the third quarter. Home builder stocks fared better than the broader market after Lennar Corp.reported better-than-expected earnings for the third quarter. The iShares U.S. Home Construction fell about 0.7% on the day.
Source : MarketWatch