U.S. stocks opened lower on Tuesday as weak manufacturing data weighed on investor sentiment. The Institute for Supply Management (ISM) reported that its manufacturing index fell to 47.8 in September, the lowest level since June 2009. A reading below 50 indicates a contraction in manufacturing activity.
The disappointing data fueled concerns about a potential slowdown in the U.S. economy, which has so far remained resilient despite global headwinds. Investors are now closely watching upcoming economic releases for further signs of weakness.
Here’s a breakdown of how major indexes fared in early trading:
- Dow Jones Industrial Average: Down approximately 0.5%
- S&P 500: Down approximately 0.6%
- Nasdaq Composite: Down approximately 0.8%
Analysts suggest that the trade war between the U.S. and China continues to negatively impact the manufacturing sector. The uncertainty surrounding trade policy is likely to keep businesses cautious about investing and expanding.
The market’s reaction highlights the sensitivity to economic data as investors try to gauge the Federal Reserve’s next move. Some analysts believe that continued weakness in the economy could prompt the Fed to cut interest rates further.