The US markets closed sharply lower on Monday, after languishing in negative territory right through the day's session. Traders were concerned with High commodity prices, a surge in Treasury yields, worries about growth and rising inflation. Traders were also worried that the regulatory crackdowns and a collapse at Evergrande could hurt an already fragile Chinese economy and weigh on global growth. Market participants were closely watching beleaguered developer China Evergrande, whose shares were suspended in Hong Kong ahead of an announcement about a major transaction.
On the economic data front, a report released by the Commerce Department showed new orders for U.S. manufactured goods jumped by more than expected in the month of August, with factory orders surging up by 1.2 percent in the month, after climbing by an upwardly revised 0.7 percent in July. Street had expected factory orders to increase by 0.9 percent compared to the 0.4 percent rise originally reported for the previous month. The report showed orders for durable goods shot up by 1.8 percent, while orders for non-durable goods rose by 0.6 percent. Meanwhile, the Commerce Department said shipments of manufactured goods inched up by 0.1 percent in August after jumping by 1.5 percent in July.
Dow Jones Industrial Average slipped 323.54 points or 0.94 percent to 34,002.92, the Nasdaq declined 311.21 points or 2.14 percent to 14,255.49 and S&P 500 was down by 56.58 points or 1.30 percent to 4,300.46.
