Oil Prices, Stocks Slump On Growth Worries

New York, (APP - UrduPoint / Pakistan Point News - 4th Sep, 2024) Oil prices slumped more than four percent and global stocks retreated amid growth worries ahead of key US employment data later in the week.

Major US indices spent the entire day in the red, with the Nasdaq finishing down more than three percent following lackluster manufacturing data.

The Institute for Supply Management's manufacturing index was 47.2 percent in August, up slightly from a month earlier, but still well below the 50-point mark separating expansion from contraction.

ISM officials said demand remained subdued, leading to a fifth straight month of contraction.

The stock market losses come ahead of major employment data later in the week that will have a say in upcoming US monetary policy decisions.

The prior jobs report sparked a brief but dramatic sell-off in US equities, elevating recession fears before subsequent economic reports bolstered confidence.

Another weak jobs report would be a "significant headwind," said Art Hogan, chief market strategist at B. Riley Wealth.

"Then you have two in a row and you start to be concerned about the future of the economy and jobs," Hogan said.

Analysts noted that September is an historically weak period for stocks.

"I think there's just profit taking, kind of rebalancing going on there," said Sam Burns, chief strategist of Mill Street Research. "And now that earnings season is over, there's much less in terms of corporate news to drive things."

Earlier, bourses in Europe and Asia also pulled back, while oil prices hit eight-month lows.