US open: Wall Street losses accelerate as recession fears abound
Wall Street's main market gauges opened markedly lower on Wednesday after some dismal manufacturing figures from the previous session led to fears of a global recession before the end of 2019.
As of 1540 BST, the Dow Jones Industrial Average was down 1.59% at 26,151.41, while the S&P 500 was 1.58% weaker at 2,893.67 and the Nasdaq Composite started out the session 1.51% softer at 7,789.26.
The Dow opened 421.63 points lower on Wednesday after finishing out the previous session decidedly lower as the ISM manufacturing index for September came in at its weakest level in a decade, declining to 47.8 from 49.1 in August, missing expectations for an increase to 50.1.
Donald Trump again took aim at the Federal Reserve after the report came out, claiming that a strong US dollar and high interest rates were to blame for the weak manufacturing numbers.
And geopolitical tensions in the South China Sea were again in focus after North Korea fired a ballistic missile from a submarine or underwater launch platform just a day after confirming it would resume nuclear talks with the United States, according to South Korean military officials.
Also, the European Union's top trade official Cecilia Malmstrom warned that the bloc could impose retaliatory tariffs on the US before World Trade Organisation's ruling on state aid for Airbus came through.
On the data front, following a hard month for mortgage rates, borrowers pounced as applications increased 8% week-on-week following a small dip in the 30-year fixed-rate, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 58% higher year-on-year.
Elsewhere, private sector employment in the US rose a little less than expected in September, according to the latest figures from ADP.
Employers added 135,000 jobs last month, missing expectations for a 140,000 increase. Meanwhile, the previous month’s gain was revised down to 157,000 from 195,000.
Mark Zandi, chief economist of Moody’s Analytics, said: "Businesses have turned more cautious in their hiring. Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise."
In Fed speak, Thomas Barkin, Patrick Harker and John Williams were all scheduled to deliver speeches throughout the course of the day.
In corporate news, tech stocks were leading the decline shortly after the bell, with Amazon and Alphabet both sliding more than 1.25% in early trade.
Acuity Brands and Lennar were both scheduled to post their latest quarterly figures on Wednesday.