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Wall Street takes a hit


Dow Jones Industrial Average drops 268 points

The Dow slid 268.37 points, or 0.96%, to close at 27,783.04. The S&P 500 dropped 0.86% to 3,113.87. The Nasdaq Composite pulled back 1.12% to 8,567.99. Stocks kicked off December on the wrong foot as weak economic data and trade worries halted the market’s rally to record highs.

Manufacturing data, trade worries spark sell-off

The Institute for Supply Management said U.S. manufacturing activity in the U.S. contracted more than expected in November. The disappointing data sent the major averages tumbling. Investors also grappled with negative rhetoric on the U.S.-China trade front. President Donald Trump said Monday that signing legislation in support of Hong Kong protesters does not make the countries’ relationship “better.” He also said China still wants to make a trade deal, but “we’ll see what happens.” Monday’s manufacturing data led investors to take profits with the averages near record highs. Meanwhile, the rhetoric around U.S.-China trade raised concerns that a deal may not be signed before Dec. 15, which is a key deadline for the negotiations.

Momentum stocks take a big hit

What happens next?

The ISM nonmanufacturing PMI will be front and center on Tuesday after the disappointing print on the manufacturing index. Wall Street will also watch out for China possibly unveiling an “unreliable entry list.” Read more here.

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