Stock indexes were recorded at high levels until the month of October and the beginning of the 4th quarter. In the last two days the United States markets have dropped widely because investors started showing worries about the recent sign of an economic slowdown.
The Dow Jones Industrial Average’s decreases so deeply on Wednesday, by bringing its two-day downturn to nearly, 838 points. The Dow Jones has lost almost 3.1 percent so far this quarter, already considering the 1.2 percent gain of the 3rd quarter. It remains high 11.8 percent for the year.
The massive decrement in the Dow Jones started after a key measure of the United States manufacturing observed its lowest reading over 10 years. September’s reading of manufacturing information from the Institute of Supply management recorded at 47.85 percent which is the 2nd consecutive month of index contract. Any reading of the Institute of Supply Management index below 50 percent indicates a contraction.
Previous month’s slowdown in the manufacturing field was just private payroll report which elaborated that pace of hiring is easing due to the labor industry continues to tighten. It is also reported that the firms have been hiring an extra 135,000 workers in September, a slowing data from 157,000 hirings during the last month. While the August numbers were revised lower because there were around 195,000 more workers previously determined for the month.
One of the main concerns of investors is that statement proceedings will diminish trade talks, mostly with China. Along with ongoing trade war weighing on the American firms, Wall Street remains worried that US President Donald Trump will not be able to catch up a deal which would result in the deduction of the tariffs on billions of dollars that worth of imports.