US stocks slipped lower on a fall in energy stocks after oil prices touched a six month low, and economic data from the US government showed that the US economic growth slowed at the end of the second quarter.
The Dow Jones Industrial Average most recently lost 177.75 points or 1.0% at 17,612 points.
The Benchmark S&P 500 Index was most recently 14.43 points or 0.69% lower at 2089.04 points with nine of its ten key sectors trading lower.
The Nasdaq Composite was most recently 35.47 points or 0.7% lower at 5,091.05 weighed down the most by a 2.7% fall by Apple shares.
Energy stocks reported their biggest three day losses in more than seven months with EXXON oil and Chevron adding to the losses recorded on Friday after worse than expected quarterly earnings.
Oil prices touched their lowest in more than six months during the day on fresh evidence showing a slowdown in demand in China and report of increasing supply.
Data from the Institute for supply management showing that its closely watched Manufacturing survey for the month of June was weaker than forecast also pressured oil prices.
Data from the US Department of Commerce just before the bell showed that consumer spending in the US in June rose slightly less than expected despite income being slightly above economists polled by Reuters’ forecast.
Traders are now expected to shift focus to the monthly payrolls report due later this week with all eyes on the Federal Reserve as it looks for signs of economic growth in order to start its monetary tightening policy.
“Friday’s numbers will tell us what direction we’re going to take in the market in the next three weeks or so,” Kent Engelke, chief economic strategist at Capitol Securities Management, told the Wall Street Jornal.
“It’s going to be very tantamount to how aggressive the Fed is actually going to be,” he said.
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