Wall Street suffers heavy losses as investors return from long weekend
|- Disappointing manufacturing data weigh on industrial shares on Tuesday.
- Defensive sectors stay in positive territory amid risk-off flows.
- US President Trump says they are doing very well in trade negotiations.
With investors returning from the long Labor Day weekend, major equity indexes in the United States started the day in the negative territory. As of writing, the Dow Jones Industrial Average is down 1.25% on the day while the S&P 500 and the Nasdaq Composite are both erasing 0.7%.
Today's data from the US revealed that the business activity in the manufacturing sector contracted in August with both the ISM and the IHS Markit Manufacturing PMI readings coming in below the 50 mark. The S&P 500 Industrials Index came under pressure on dismal data and is down 1.5% on the day to lead the losses.
Meanwhile, US President Trump, via Twitter, today said that they were doing very well in trade negotiations with China but failed to help the market sentiment improve. Reflecting the risk-off atmosphere, the defensive Utilities and Real Estates indexes are in the positive territory.
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