U.S. stocks plunged on Tuesday as fears about a weak U.S. economy were enflamed after investors got another disappointing economic report – this time on consumer spending.
The selloff was so broad and so deep it pushed the S&P 500 into negative territory for the year and bond yields to their lowest levels in nine months.
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“Now that we have solved the debt ceiling issue the market has moved onto the other data, which has taken a significant turn for the worse,” said Ryan Detrick, senior technical strategist with Schaeffer’s Investment Research.
The Dow Jones industrial average (INDU) plunged 266 points, or 2.2%, to close at 11,867. The Dow was dragged lower by the industrial and manufacturing heavyweights of the 30-member index.