US stocks close sharply lower amid concerns over China

By FXStreet FXStreet (Córdoba) – US stocks crumbled on Tuesday, recording one of the worst trading days of the year as weak Chinese manufacturing data fueled worries of a further slowdown in the world’s second largest economy.

The Dow Jones Industrial Average, lost 469.68 points, or 2.84%, to 16,058.35, with all 30 components finishing in the red. The S&P 500 SPX, fell 58.33 points, or 2.96%, to 1,913.85. The Nasdaq Composite plummeted 140.40 points, or 2.94% to 4,636.10, erasing all previous 2015 gains and turning negative year-to-date.

Weak US manufacturing PMI in sync with global releases

On the data front, the ISM PMI showed August manufacturing activity expanded at its slowest pace in more than 2 years (51.1 versus 52.6 expected) in line with weak readings around the globe. On the other hand, July construction spending rose 0.7% to the highest level since May 2008.

DJIA technical view

“As for the DJIA, the index posted a daily low of 15,978 before recovering some 100 points before the close maintaining, however, a strong negative tone as the daily chart shows that the 20 SMA presents a sharp bearish slope, still well above the current level, whilst the technical indicators extended their declines, now approaching oversold …read more

Source:: FX Street