Dow drops nearly 500 points amid weak economic data

NEW YORK, June 28 (Xinhua) -- U.S. stocks dropped on Tuesday as market sentiment was dented by soft data.

File photo: AFP

The Dow Jones Industrial Average fell 491.27 points, or 1.56 percent, to 30,946.99. The S&P 500 lost 78.56 points, or 2.01 percent, to 3,821.55. The Nasdaq Composite Index decreased 343.01 points, or 2.98 percent, to 11,181.54.

Ten of the 11 primary S&P 500 sectors ended in red, with consumer discretionary and technology down 4.03 percent and 3.01 percent, respectively, leading the laggards. Energy rose 2.7 percent, the lone gaining group.

On the data front, U.S. consumer confidence index dropped to 98.7 in June from the May reading of 103.2, as inflation continues to dampen Americans' economic views, New York-based The Conference Board reported on Tuesday. The print marked its lowest level since February 2021 and missed a Dow Jones estimate of 100.

The downbeat data came as concerns over inflation, higher interest rates, and a possible recession persist on Wall Street.

"Worries over both the pace of central bank tightening and growth look set to keep equities volatile," analysts at UBS said Tuesday in a note.

"The main driver of markets in 2H will be investor perceptions of whether we are headed for stagflation, reflation, a soft landing, or a slump," they added.