Dow And S&P End Day On A Knife Edge

U.S. markets ended on a knife edge Tuesday, worried by rising geopolitical concerns around the Ukrainian situation and by disappointing economic data from China.

So at closing, the Dow Jones fell over 0.8% to 16,429.5 points, while the Nasdaq Composite lost 0.7% to 4,352.8 points and the S&P 500 dropped nearly 1% to 1920.2 points.

The Polish Foreign Minister said that Russian troops are positioned to pressure or invade Ukraine, and Vladimir Putin asked his government to prepare responses to economic sanctions.

In China, the HSBC PMI final service sector index fell to just 50 in July, a threshold limit that marks the boundary between growth and contraction, which seemed to particularly concern investors.

Uncertainties about the health of the Chinese economy have not been completely dispelled by good figures in the United States. The non-manufacturing ISM stood at 58.7 in July, up from 56 in June, while analysts expected more modest rise to 56.5.

The improvement in new orders component – considered a leading indicator – suggests that activity in the services sector will continue to strengthen in the coming months.

Industrial orders rose 1.1% in June, while economists had expected only a general rebound. The increase in durable goods orders was also revised from +0.7% to +1.7%.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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