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Dow is lowered by weak production data



The ISM index fell to 47.8 in September, compared to the 50.1 refinance consensus forecast. A level above 50 marks growth. It was the lowest reading since June 2009, the last month of the recession, according to the Institute of Supply Management.

Manufacturers cited the US and China trade wars that weigh on demand and make materials more expensive, according to ISM.

"The disappointing data only gives long-standing fears of slowing global growth," said Alec Young, CEO of Global Market Research at FTSE Russell.

Stocks did not like the data a bit and mated previous gains.

Dow ( INDU ) fell 300 points, or about 1
%, while S&P 500 ( SPX ) fell 0.8%. Nasdaq Composite ( COMP ) was down 0.7%.

Due to the weakness of the data, the Federal Reserve could become more rude at its next meetings. [19659003] "We believe the Fed will provide additional & # 39; insurance & # 39; interest rates to try to curb the decline in overall growth," wrote James Knightley, chief international economist at ING.

Market expectations for a quarterly percentage point interest rate cut last month rose to 65%, compared to less than 40% on Monday.

All three main indices closed higher on Monday, but noted the worst performance of the year in the third quarter.

Gold prices, which had fallen to almost two months earlier, spiked higher on production data.

Gold futures rose 1.4% to $ 1,485.50 ounces.


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