Worries over pace of the recovery see shares fall
US stocks fell in the year’s lightest volume yesterday as worries about the pace of economic recovery overshadowed data showing a rise in consumer spending and income.
The uncertainty weighed more on sectors associated with growth, including banks and consumer discretionary stocks. Bank of America fell 2.5 per cent to $12.32 while speciality retailer Nordstrom tumbled 5.2 per cent to $28.72. US consumer spending rose at the strongest pace in four months in July while a smaller rise in incomes was less than forecast.
The Dow Jones industrial average dropped 140.92 points, or 1.39 per cent, to 10,009.73. The Standard & Poor’s 500 lost 15.67 points, or 1.47 per cent, to 1,048.92. The Nasdaq Composite fell 33.66 points, or 1.56 per cent, to 2,119.97. About 5.6bn shares traded on US exchanges, the lowest volume so far this year.