U.S. stocks closed sharply lower Tuesday, and turned negative tomorrow after close monitoring of US production at their worst levels since 2009. The Institute for Supply Management Index fell to 47.8 in September from 49.1. Dow Jones industrial average
completed 343 points, or 1.3%, to 26,573. The S&P 500 Index
fell 1.1% to 7,908. The decline in manufacturing reflects an end to the US and global economies aggravated by a trade war with China. Economists surveyed by MarketWatch had predicted the index to a total of 50.2. Any reading below 50 indicates deteriorating conditions. "The disappointing data only arouses lingering fears of slowing global growth. And with US-China trading expected to give little in the way of short-term breakthroughs, investors continue to favor countercyclical, high-yield defensive stocks that weak data pressures interest rates are ever lower, "wrote Alec Young, CEO of Global Market Research, FTSE Russell.