Fears of Economic Slowdown Spark Stock-Market Selloff – by Hannah Miao (Wall Street Journal/MSN.com – September 3, 2024)

https://www.msn.com/

Stocks tumbled Tuesday after renewed worries about a slowing economy gripped investors, echoing a sharp selloff that rattled global financial markets just a month ago. Major U.S. indexes notched their worst day since Aug. 5. The S&P 500 shed 2.1% and the Nasdaq Composite fell 3.3%. The Dow Jones Industrial Average lost about 626 points, or 1.5%.

Traders returned from the Labor Day holiday to data suggesting continuing gloom in the manufacturing sector, rekindling concerns about the health of the economy. The benchmark 10-year U.S. Treasury yield dropped to 3.843%, from 3.910% on Friday.

“We have faded this growth scare perhaps too soon,” said Arun Sai, senior multiasset strategist at Pictet Asset Management.

Investors have been bullish about stocks after nearly two years of double-digit percentage gains for the S&P 500, leaving the market vulnerable to sudden reversals. The surging market has minted millionaires and padded many Americans’ net worth, but left stocks looking pricey.

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