Indexes gapped down at the open on weaker than expected Chinese manufacturing data, and buyers never really showed up Tuesday. The S&P 500 finished off 0.87% while the NASDAQ dropped 1.13%. In China, a private gauge of nationwide factory activity in China fell to 49.4 in April, indicating a faster pace of contraction and missing analyst forecasts.
“I don’t see one lever pushing everything. It’s a combination of again more of that risk-off, valuations a little extended, earnings did come in a little better (but still declining), concerns coming out of weaker PMI numbers pointing to lackluster growth,” said Tim Dreiling, senior portfolio manager with the Private Client Reserve at U.S. Bank.
“China has been out of the radar in the last few months because there’s been some upward stability but I think that’s questionable,” Jaime said, noting the softer data also renewed concerns of oversupply in commodities such as oil.Continue reading