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Overnight Markets: Dow tanks 500 points more ahead of Fed meeting

Overnight Markets: Dow tanks 500 points more ahead of Fed meeting

US stocks finished sharply lower on Monday, with the Dow plummeting more than 500 points and the S&P 500 closing at its lowest in 14 months, as investors continued to fear weakening global growth ahead of the final policy meeting of the US Federal Reserve this year.

The Dow Jones Industrial Average fell 508 points, or 2.11%, to 23,593, the S&P 500 lost 54 points, or 2.08%, to 2,546 and the Nasdaq Composite dropped 157 points, or 2.27%, to 6,754.

The decline drove Wall Street deeper into correction territory, with the S&P 500 hitting its lowest since October 2017. A late afternoon selling swept through the tech, energy, materials and financial sectors. The small cap Russell 2000 index confirmed a bear market, having fallen more than 20% from its 31 August closing high.

British retailer Asos issued a profit warning, raising concerns about weakening consumer strength, despite robust US retail sales data on Friday. The National Association of Home Builders Housing Market Index indicated homebuilder sentiment had plunged to a three-and-a-half-year low.

S&P 500 consumer discretionary stocks tumbled 2.8% amid concerns about flagging consumer sentiment. Amazon.com fell 4.5%, creating the biggest drag on the S&P 500 and the Nasdaq. Retail stocks declined overall, with the S&P 500 Retailing Index falling 3.4%.

Insurer UnitedHealth Group Inc shed 2.6% after a federal judge late on Friday ruled that Obamacare was unconstitutional.

Johnson & Johnson declined for a second consecutive session following a Reuters report that the company knew for decades that its baby powder contained asbestos. J&J shares ended 2.9% lower.

Goldman Sachs Group Inc dropped 2.8% to a two-year low after Malaysia filed criminal charges against the bank in connection with an investigation into suspected corruption and money laundering involving the sovereign wealth fund 1MDB.

In Asia, share markets stumbled on Tuesday in morning session following an overnight sell-off on Wall Street and ahead of a major speech by Chinese President Xi Jinping on the 40th anniversary of Chinese economic reforms.

The Shanghai composite slipped 0.06% early in the morning, while Hong Kong’s Hang Seng index was largely flat.

Japan's Nikkei 225 fell 1%. Over in South Korea, the Kospi was near flat. The ASX 200 in Australia also fell and was lower by about 0.86%.

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