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US markets settle deeply in red amid worries about economic outlook

27 Sep 2023 Evaluate

The US markets ended deeply in red on Tuesday with Nasdaq settling cut of over one and half percent amid ongoing concerns about the outlook for interest rates. Further, worries about the economic outlook also weighed on markets following the release of separate reports showing a sharp pullback in new home sales and a significant deterioration in consumer confidence. The Commerce Department released a report showing new home sales plummeted by 8.7 percent to an annual rate of 675,000 in August after soaring by 8.0 percent to an upwardly revised rate of 739,000 in July. Street had expected new home sales to decrease to an annual rate of 700,000 from the 714,000 originally reported for the previous month.

With the upward revision, the annual rate of new home sales in July was the highest since hitting 773,000 in February 2022. A separate report released by the Conference Board showed its consumer confidence index tumbled to 103.0 in September from an upwardly revised 108.7 in August. Street had expected the consumer confidence index to edge down to 105.8 from the 106.1 originally reported for the previous month. On the sectoral front, Gold stocks moved sharply lower over the course of the session, dragging the NYSE Arca Gold Bugs Index down by 3.0 percent to its lowest closing level in over six months. The weakness among gold stocks came amid a decrease by the price of the precious metal, with gold for December delivery falling $16.80 to $1,919.80 an ounce.

Dow Jones Industrial Average fell 388 points or 1.14 percent to 33,618.88, Nasdaq dropped 207.71 points or 1.57 percent to 13,063.61 and S&P 500 was down by 63.91 points or 1.47 percent to 4,273.53. 


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