U.S. stocks tumbled to their lowest levels since mid-August, as investors retreated from risky assets amid growing worries about global growth.
The Dow Jones Industrial Average lost 235 points, or 1.4%, to 16808. The S&P 500 Index shed 27 points, or 1.4%, to 1946 and the Nasdaq Composite Index declined 77 points, or 1.7%, to 4416.
The Russell 2000 small-cap index entered correction territory during Wednesday’s session, recently down 10% from its July 3 high.
“Small-caps are what people point to for a growing economy…they’re laggards right now, and that’s starting to concern more people,” said Michael Antonelli, sales trader at brokerage Robert W. Baird.
On Friday, the Labor Department’s monthly jobs report is expected to show an increase of 215,000 jobs in September. Reuters
Stocks started the session lower and the declines accelerated later in the day, after reports on U.S. manufacturing and construction spending fell short of economists’ forecasts. Investors piled into U.S. government bonds, sending the 10-year note’s yield to the lowest level in nearly a month. In afternoon trade, the 10-year yield fell to 2.405% from 2.509% on Tuesday.