The manufacturing sector shrank for the first time in three years
in August, as it feels the pain of the trade war and slowing global demand.
Manufacturers cited the US-China trade war as weighing on demand and making materials more expensive, according to the ISM.
“The disappointing data is only fanning long-standing fears of slowing global growth,” said Alec Young, managing director of global markets research at FTSE Russell.
Stocks didn’t like the data one bit and pared earlier gains.
The Dow (INDU)
fell some 200 points, or 0.7%, while the S&P 500 (SPX)
fell 0.6%. The Nasdaq Composite (COMP)
was down 0.4%.
All three indexes closed higher on Monday, but nevertheless recorded their worst performance of the year in the third quarter
Gold prices, which had fallen to a near two-month low earlier amid falling odds of additional monetary easing, spiked higher in response.
Gold futures were up 1.2% at $1,482.50 an ounce.