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Stocks dropped to their lows of the day on Thursday after the release of disappointing economic data added fuel to Wall Street’s fears over the global economy.
The Dow Jones Industrial Average dropped to trade 331 points lower, or 1.3 percent. The S&P 500 slid 1.1 percent, while the Nasdaq Composite was down 1.1 percent.
Thursday’s losses brought the Dow’s three-day decline to more than 1,100 points, adding to the Street’s dismal start to the fourth quarter.
The Institute for Supply Management said its reading on the U.S. services sector fell last month to its lowest level level since August 2016. The ISM nonmanufacturing index came in at 52.6 for September. Economists polled by Dow Jones expected 55.3.
Earlier this week, ISM posted its weakest reading on the manufacturing sector in more than 10 years, sparking fears of an economic recession.
The weakness in manufacturing has raised concern over the U.S.-China trade war’s impact on the economy. The conflict started last year. Since then, China and the U.S. have slapped tariffs on billions of dollars worth of their products. Delegations from Washington and Beijing are due to meet next week in the hope of finding a consensus.
In other trade news, the White House announced it will impose 10 percent tariffs on European-made Airbus planes and 25 percent duties on French wine, Scotch and Irish whiskies, along with cheese from across the continent.
The move comes after the World Trade Organization on Wednesday ruled in favor of the tariffs after years of wrangling over European government subsidies for aircraft maker Airbus. The EU has suggested it will retaliate against U.S. tariffs.