The two benchmark US stock indexes are poised for a dark December with the Dow Jones and S&P 500 down 7.8 percent and 7.6 percent so far this month. This puts them both on a collision course to plummet to their worst December performance since December 1931 as concerns over economic global growth rattle markets. During that time, the Dow lost 17 percent of its value, and the S&P 500 declined by 15 percent. Yesterday saw the Dow Jones end the trading day in the red, down 507.53 points, or 2.11 percent, to 23,592.98, while the S&P 500 lost 54.01 points, or 2.08 percent, to 2,545.94.
This puts the S&P 500 at its lowest in 14 months.
Nearly 2,000 stocks on the New York Stock Exchange and Nasdaq hit 52-week lows, the most in nearly three years. Only 40 reached new highs.
Concerns about flagging consumer sentiment pushed down S&P 500 consumer discretionary stocks, which tumbled 2.8 percent.
Among the biggest losses was Amazon.com Inc, which saw a drop of 4.5 percent.
Investors said market skittishness was likely to persist heading into the Federal Open Market Committee meeting on Tuesday and Wednesday.
An indication that the Fed would slow its pace of interest-rate hikes could calm markets, but the US central bank’s intentions remain unclear, said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
Mr Detrick said: ”We’re all holding our breath for the Fed.
“If the Fed takes its foot off the pedal for the first half of next year, that would get rid of one uncertainty.”
David Kelly, chief global strategist at JPMorgan Funds, said: “With increased stock market volatility and signs of slower growth overseas, there are increasing calls for the Fed to halt its rate increases.
“This is where the Fed needs to keep its head first, because current Fed policy is neither too aggressive nor too tight and second, because a change of course at this point could undermine confidence.”
A flurry of disappointing data from China and Europe has impacted markets negatively as fears of a slowdown in global growth begin to intensify.
Gloomy figures from China revealed retail sales in the world’s second-largest economy grew at the weakest pace since 2003 and industrial output rose by the least in nearly three years.
While in Europe, borrowing costs were revealed to have tumbled to their lowest point in more than four years.
The ‘flash’ eurozone purchasing managers’ index of business activity in the bloc, fell to to 51.3 in December, its weakest since November 2014.