US stocks post major losses as weak data trigger recession woes

By Ovunc Kutlu

ISTANBUL (AA) - Major stock exchanges in the US closed with steep losses Tuesday as weak economic figures triggered fears of a recession in the American economy.

The Dow Jones Industrial Average fell 626 points, or 1.51%, to finish the day at 40,936. The S&P 500 decreased 119 points, or 2.12%, to 5,528.

The Nasdaq plummeted 577 points, or 3.26%, to 17,136.

All three exchanges had their worst daily performance since the global stock market sell-off recorded on Aug. 5, when they took a nosedive with a daily loss of around 3% apiece amid recession fears.

Such fears were renewed Tuesday with weak production and manufacturing data regarding the US economy.

Production in the US fell in August for the first time in seven months, data provider S&P Global said earlier in a report. The US manufacturing sector, in addition, contracted in August for the fifth consecutive month, according to a report by the Institute for Supply Management (ISM).

The VIX volatility index, also known as the fear index, jumped 33.2% to 20.72. The 10-year US Treasury yield fell 2% to 3.833%.

The dollar index rose 0.09% to 101.75, while the euro decreased 0.02% to $1.1041 against the greenback.

Precious metals were in the red, with gold losing 0.26% to $2,493 per ounce and silver diving 1.7% to $28.05.

Oil prices plummeted more than 4.5%, with global benchmark Brent crude at $73.72 a barrel and US benchmark West Texas Intermediate crude at $70.19.