Following the latest home sales and consumer confidence statistics that fueled worries over the status of the American economy, the S&P 500 dropped on Tuesday to its lowest point in months.
The overall index decreased by 1.4%, falling below 4,300 for the first time since June 9. The Nasdaq Composite dropped 1.5% while the Dow Jones Industrial Average dropped 400 points, or 1.2%.
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)
