U.S. stocks fell on Wednesday after a report showed consumer confidence unexpectedly dropped to its lowest level in nine months, adding to concerns about the strength of the economic recovery.
Dow Jones Industrial Average
The Dow Jones Industrial Average fell 67.47 points, or 0.65 percent, to 10,340.69. The Standard & Poor’s 500 Index dropped 8.33 points, or 0.77 percent, to 1,088.38. The Nasdaq Composite Index lost 27.28 points, or 1.25 percent, to 2,159.47.
Consumer Confidence Plummets
The Conference Board, a private research group, said its Consumer Confidence Index fell to 50.4 in August, down from 54.7 in July. Economists had expected a reading of around 52.
Analyst Commentary
“The consumer confidence number was a big disappointment,” said Peter Cardillo, chief market economist at Avalon Partners in New York. “It suggests that the economy is not recovering as quickly as we had hoped.”
Sector Performance
All ten S&P sectors were down, with consumer discretionary and technology stocks leading the decline.
Economic Outlook
The weak consumer confidence data added to concerns about the pace of economic growth in the second half of the year. Investors are closely watching economic indicators for signs of a sustained recovery.