US stocks dropped pulling the benchmark indexes down from their records with energy producers leading the declines, and oil dropping the lowest from 2009.
Chevron Corp and Exxon Mobil dropped more than 2% to pace losses in the 43 companies of the S&P 500 Index. Cubist pharmaceuticals Inc climbed 35% after Merck & Co. agreed to acquire the antibiotics maker.
McDonald’s Corp dropped 3.8% the most in two years.
According to Bloomberg, the S&P 500 dropped 0.4% to 2,067.44 and the Dow Jones Industrial Average declined 0.35 or 53.84 points to 17,904.95. The Russell 2000 Index of smaller companies dropped 0.5%.
Senior vice president of trading at ICAP Plc, Ron Anari said, “The market has got to take a break, there isn’t a lot of investing cash in the market today and there’s not any one thing in particular that’s forcing it. Lower oil may be better for US consumers but it could be giving us an indication of a slowing global economy, and no matter how good we do here we won’t be fully robust unless the world economy shows some activity.”
European and US stocks dropped after worries were stoked about slowing global economic growth by Japanese and Chinese data. The disappointing economic growth abroad overshadowed the robust US jobs report of Friday, which had revived bests that the Federal Reserve would consider ending its near-zero interest rate policy sooner than expected, in mid 2015.
Co-chief investment officer at OakBrook Investments LLC, Peter Jankovskis was quoted by Reuters as having said, “The other side of it, too, is many of these other countries are taking some efforts to stimulate as well. People are looking at it as temporary, and somewhere down the line as those economies get stronger, everybody will be in pretty good shape.”
The FTSE 300 dropped 0.6% to 1,396.79 while the Nikkei of Tokyo eked out a gain of 0.8%.
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