Economics
U.S. Stocks Slump as Factory Report Erases Rally on Debt Deal
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U.S. stocks slumped, sending the Standard & Poor’s 500 Index down for a sixth day, as slower-than-forecast growth in manufacturing erased a rally triggered by speculation lawmakers will raise the debt ceiling.
The S&P 500 pared a loss of more than 1 percent by the end of the trading day as lawmakers including House Speaker John Boehner voiced support for the debt-limit compromise, fueling optimism the legislation would pass. FedEx Corp. fell 1 percent, pacing declines in stocks most-tied to economic growth. Health-care shares in the S&P 500 slid 1.7 percent after Medicare announced an 11.1 percent rate cut next year for nursing-home providers.