The US markets fell sharply on Monday, as heavy selling in high-growth stocks, which began on Friday, continued to spill over the broader market, with investors now eyeing the start of first-quarter earnings season. All three major US stock indexes are now negative for the year with the Nasdaq 100 Index to its biggest three-day retreat since 2011. The US Senate passed legislation restoring benefits for the long-term unemployed that expired late last year, a measure opposed by House Republican leaders. Senators voted 59-38 in favor of the bill, which is the product of a bipartisan agreement struck last month by Rhode Island Democrat Jack Reed and Nevada Republican Dean Heller, who was among six Republicans who voted for the measure.
On the economy front, US consumer credit climbed 6.4% in February, mainly for college loans and auto purchases. US consumers increased their debt by a seasonally adjusted annual rate of $16.5 billion, slightly faster than a revised $13.8 billion increase in January. Consumer credit rose 5.3% in January, 7.0% in December and 5.5% in November. Consumer debt has risen every month since August 2011. Non-revolving credit such as federal student loans jumped 10.1%, or $18.9 billion, in February. Credit-card debt fell by 3.4%, or $2.4 billion.
The Dow Jones Industrial Average lost 166.84 points or 1.02 percent, to 16,245.87, the Nasdaq Composite was down by 47.98 points or 1.16 percent, to 4,079.75, while the S&P 500 dropped 20.05 points or 1.08 percent, to close at 1,845.04.
The Indian ADRs closed mostly in red on Monday; Dr. Reddy’s Lab was down 1.04%, ICICI Bank was down 0.36% and Infosys was down 0.13%. On the other hand, Tata Motors was up 0.28% and Wipro was up 0.07%.