US stocks open lower on fears about global economy

<p>Wall Street opened lower today as investors worried about the eurozone and Ebola.</p>

Wall Street opened lower today (October 16th), following a day of decline across European and Asian markets. 

The Dow Jones industrial average was down 0.2 per cent, to 16,105.68 at 10:50 ET, the S&P 500 lost 0.68 per cent to 1,855.95 and the Nasdaq Composite dropped 0.67 per cent to 4,133.25.

Yesterday, the S&P 500 closed at its lowest in six months, on continued concerns about sluggish global demand and its potential impact on the US economy. Investors are also concerned that the eurozone could be hit by another recession and even deflation as inflation stands at a five-year low. 

The US Commerce Department also published figures showing retail sales fell in September for the first time in seven months. Total retail and food services sales dropped 0.3 per cent from August.

The news led to fears that the US economy may be feeling the effects of the struggling eurozone and a slowdown in China growth.

"There’s been a significant correction in US equities and that’s shaken investor confidence,” Toby Lawson, head of futures, options and cash equities trading for Asia-Pacific at Newedge Group SA told Bloomberg. "Geopolitical risks and the spread of Ebola are adding to global economic uncertainties. When the market is a state of flux, everything gets amplified."

However, positive data emerged today that could lift sentiment. It showed the number of Americans filing new claims for jobless benefits fell to a 14-year low last week, while industrial output rose sharply in September. 

Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 264,000, the lowest level since 2000, the Labor Department said today, quoted by Reuters.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.