US equities came under severe pressure as some disappointing data led to concerns about the outlook for the U.S. economy. The major averages on Wall Street showed substantial moves to the downside. The tech-heavy Nasdaq plunged 405.25 points or 2.3 percent to 17,194.15, the S&P 500 tumbled 75.62 points or 1.4 percent to 5,446.68 and the Dow slumped 494.82 points or 1,2 percent to 40,347,97.
Meta shares rose 4.8% after posting better-than-expected second-quarter results and optimistic guidance, while Qualcomm fell 9.4% amid warnings about trade restrictions. Nvidia also struggled, losing 6.7%. Apple, Amazon, and Intel are set to report their quarterly results today after the market closes.
The Institute for Supply Management released a report showing U.S. manufacturing activity unexpectedly contracted at an accelerated rate in the month of July. The ISM said its manufacturing PMI fell to 46.8 in July from 48.5 in June, with a reading below 50 indicating contraction. The report said initial jobless claims climbed to 249,000, an increase of 14,000 from the previous week's unrevised level of 235,000.
US treasuries moved sharply higher amid renewed concerns about the economic outlook. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 13.3 basis points to 3.976 percent. The dollar index is steadying around 104 mark.
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