The Dow failed to extend its monster rally on Wednesday as Wall Street wrestled with another batch of disappointing economic data and Beijing ripped into the US government for its “sinister intention to destroy Hong Kong.”
Meanwhile, President Donald Trump unleashed his evaluation of the state of Democratic electoral politics, warning that if any of those “clowns” won the 2020 election, they would steer the economy toward a stock market crash on par with the one that ushered in the Great Depression.
Dow Struggles Amid Rising Economic Pressures
Wall Street’s major indices turned lower at the opening bell. The Dow Jones Industrial Average fell 51.19 points or 0.19% to 26,973.61.
The Dow cooled off on Wednesday. | Source: Yahoo Finance
The S&P 500 declined 6.99 points or 0.23% to 2,988.69. Technology shares dropped 0.83%, while just two primary sectors reported gains.
The Nasdaq slid 34.12 points or 0.42% to 8,114.58.
Slumping Retail Sales Add to Economic Fears
The Dow and its peers surged on Tuesday in response to blowout earnings, but the euphoria fizzled out this morning after the Commerce Department revealed that retail sales had recorded their first decline in seven months.
Retail sales dipped 0.3% in September, missing the analyst estimate of a 0.3% increase by a wide margin. Core retail sales also fell, declining 0.1% versus the consensus forecast of 0.2% growth.
Retail sales unexpectedly declined for the first time in seven months, which could intensify recession warnings. | Source: Commerce Department
The disappointing retail sales data adds to fears that a weak manufacturing sector has pulled the entire US economy to the brink of a recession. Considering that new tariffs on Chinese-produced consumer goods are scheduled to take effect on Dec.