(By Salman - iStockAnalyst Writer)US stocks plunged on Thursday as weaker-than-expected manufacturing and employment data cast doubt over the pace of the US economic recovery.
The Dow Jones Industrial Average slumped 203 points or 2.09% to finish at 9,509.28. The S&P 500 dropped 27.23 points or 2.58% to end at 1,029.85. The Nasdaq Composite plunged 64.94 points or 3.06% to 2,057.48.
The Institute for Supply Management reported Thursday that its index of manufacturing activity unexpectedly fell to 52.6% in September from 52.9% in August. Economists expected the index to rise to 54.0%.
The Commerce Department said Thursday that spending on U.S. construction projects increased 0.8% in August. Economists expected a decrease of o.1% in construction spending.
The pending-home-sales index jumped 6.4% in August to its highest level since March 2007, the National Association of Realtors reported Thursday. Economists expected pending home sales to climb 1%.
A release by Commerce Department showed that US consumer spending, which accounts for nearly two third of economy, jumped 1.3% in August. Personal income rose 0.2% in August. Economists expected consumer spending to rise 1.1% and personal income to increase 0.1% in August.
A report released by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits rose 17,000 to 551,000. in the week ending September 26. Economists expected jobless claims to rise to 535,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased 6,250 to 548,000. Continuing claims for the week ending September 19 dropped 70,000 to 6.09 million.
Shares of financials finished with steep losses. JP Morgan (NYSE:
JPM) sank $2.45 or 5.59% to $41.37.Bank of America Corp. (NYSE:
BAC) lost 71 cents or 4.20% to $16.21. Bank of America Corp. (NYSE:
BAC) announced late Wednesday that Kenneth has Lewis told the company's directors he intends to resign as chief executive and step down as a director at the end of the year. America Express (NYSE:
AXP) tumbled $1.44 or 4.25% to $32.46. Wells Fargo (NYSE:
WFC) plummeted $1.58 or 5.61% to $26.60.
DuPont (NYSE:
DD) slid $1.54 or 4.79% to $30.60.
Shares of Boeing Co.
