The US markets closed lower on Wednesday, to finish the month with losses. Major indexes finished out February on pessimistic note, with the S&P 500 and the Dow logging their worst monthly performance since January 2016 and the Nasdaq posting its weakest month since October 2016. On the economy front, the annual pace of growth in the US was trimmed to 2.5% from 2.6% in the fourth quarter, leaving a picture of a steadily growing economy intact. A slower inventory build accounted for the downward revision. Every other key figure in the latest update to gross domestic product was virtually unchanged. The increase in consumer spending, for example, was left at 3.8%. For the full year, the US expanded 2.3% vs. a 1.6% increase in 2016.
Meanwhile, Chicago PMI slipped in February to a reading of 61.9, a six-month low, from 65.7 in January. Any reading over 50 indicates improving conditions, so despite the decline, the data indicates a strong level of activity. Firms did report a slower pace of incoming orders and output. US manufacturing has been improving of late, and the Chicago region is particularly exposed to automakers whose fortunes have been helped by the need for replacements after the hurricanes.
The Dow Jones Industrial Average lost 380.83 points or 1.50 percent to 25,029.20, Nasdaq was down by 57.345 points or 0.78 percent to 7,273.01 and S&P 500 dropped 30.45 points or 1.11 percent to 2,713.83.
