Tuesday saw the S&P 500 decline to its lowest point in months as worries about the health of the American economy were exacerbated by recent figures on home sales and consumer confidence.
For the first time since June 9, the broad index dropped 1.2% and went below 4,300. In contrast to the Nasdaq Composite, which fell 1.3%, the Dow Jones Industrial Average dropped 311 points, or 0.9%.
Sales of new homes in August fell short of forecasts. According to the Commerce Department, there were 675,000 homes under contract for the entire month, which is an 8.7% decrease from July. According to economists surveyed by Dow Jones, the final number would have been 695,000, a 2.7% decrease from unrevised July totals.
The consumer confidence index published by the Conference Board decreased to 103 in September from 108.7 in August. According to consensus projections from Dow Jones, economists were looking for 105.5. The expectations index dropped to 73.7, a level below what experts believe to be a recessionary level.
Source (CNBC)
