U.S. Stocks Extend Losses After Philly Fed Unexpectedly Drops
Stocks Retreat, Treasuries Gain on Recovery Concerns
Ramin Talaie/Bloomberg
A trader works on the floor of the New York Stock Exchange.
A trader works on the floor of the New York Stock Exchange. Photographer: Ramin Talaie/Bloomberg
U.S. stocks extended losses after a Federal Reserve report showed manufacturing in the Philadelphia region unexpected contracted in August, fueling concern the economic recovery is in peril.
The Standard & Poors’ 500 Index slumped 1.2 percent to 1,081.37 at 10:02 a.m. in New York. The Dow Jones Industrial Average tumbled 128.66 points, or 1.2 percent, to 10,286.88.
Stocks extended early losses triggered by an unexpected increase in jobless claims. The Federal Reserve Bank of Philadelphia’s general economic index fell to minus 7.7 this month from 5.1 in July, which was the lowest level since August 2009. Readings above zero signal growth in the regional gauge, which covers eastern Pennsylvania, southern New Jersey and Delaware.
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