NEW YORK — Signs that China’s economy is weakening and Europe is slowing sent U.S. stocks lower.
NEW YORK — Signs that China’s economy is weakening and Europe is slowing sent U.S. stocks lower.
The price of crude oil dropped 2 percent Thursday to its lowest level in a week. That hurt oil stocks: Alpha Natural Resources, Consol Energy and Noble Energy each fell 4 percent.
The disconcerting economic news from overseas overshadowed other reports that suggested the U.S. economy is gaining momentum.
The Dow Jones industrial average closed down 78.48 points, or 0.6 percent, at 13,046.14.
The Standard & Poor’s 500 index fell 10.11, or 0.7 percent, at 1,392.78, while the Nasdaq composite index fell 12 points, or 0.4 percent, to 3,063.32.
China has released a string of worrisome economic reports recently. The latest, on Thursday, signaled its manufacturing sector could be contracting. A manufacturing index compiled by HSBC fell to 48.1 in March from 49.6 in February. Figures below 50 indicate manufacturing is contracting.
That’s a negative sign because growth in China has played a key role in shoring up the global economy since the financial crisis of 2008.
It didn’t help that another survey in Europe also pointed to slower growth. The purchasing managers’ index from Markit, a financial information company, fell to a below-forecast 48.8 points in March from 49.3 a month earlier.