US Equities Drop as ISM Signals a Contraction in August

September 3, 2019 Share Print 0

U.S. stocks fell on Tuesday as data showed factory activity shrank for the first time since 2016 in August, renewing fears that a drawn-out trade war between the United States and China could tip the world’s largest economy into recession.

The Institute for Supply Management said its index of national factory activity dropped to 49.1, compared with a reading of 51.1 estimated by analysts polled by Reuters.

The weak data also pushed the benchmark 10-year yield US10YT=RR to its lowest level since July 2016. Shares of banks .SPXBK, which typically come under pressure in a low interest rate environment, slid 2%.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.