US Stocks Decline amid Drop in Production


US Stocks Decline amid Drop in Production

US stocks declined with the Nasdaq 100 index falling 0.9% and treasuries ending the seven-day drop after a decline in industrial production in August, the first in seven months.

The S&P 500 index dropped 0.2% in New York with technology shares dropping 0.6% cumulatively. The yield on the 10-year Treasury note dropped to 2.59% by two basis points. Emerging market stocks fell for the eight day as Russia’s ruble fell for the third day to hit a record low.

Business Week reported that output in US factories, utilities and mines dropped 0.1% last month and regional manufacturing gauge was above the estimates, as shown by the Federal Reserve data today.

Tomorrow, the central bank will start a two-day meeting. MSN Money reported that the Organization for Economic Cooperation and Development trimmed growth forecasts for the developed economies amid subdued European inflation and rising geopolitical risks.

August industrial output for China was the lowest since global financial crisis.

Miller Tabak & Co LLC equity strategist, Matt Maley said, “The market has leveled off in the past two weeks but it hasn’t rolled over. As we see a pickup in volatility in interest rate markets here and cracks in Europe and Asia it raises the chances that volatility may pick up here as well in US stocks.”

Rhino Trading Partners LLC equity strategist, Michael Block said, “All this manufacturing and production data has been decent while the employment data is where things have been soft, the question is what the Fed thinks of it and whether this will soften them up a little bit. We’ll have to wait and see if on Wednesday they change the language on rates to being dependent on data.”

The Fed is considering the economy’s strength as it ends a bond-buying program by the close of the year. Since March, the central bank has announced that interest rates were to remain low for a certain period after the completion of asset purchases called quantitative easing.

To register for a free 2-week subscription to ForexMinute Premium Plan, visit

To contact the reporter of the story: Jonathan Millet at