U.S. Stocks Open Lower after Poor EU, U.S. Data
U.S. stocks dropped on opening Friday after new data releases showed rising inflation and slower growth in Europe and falling incomes for Americans.
The Dow Jones Industrial Average lost 146.52 points (1.31 percent) to 11,007.46 in the first minutes of trade.
The S&P 500 dropped 18.19 (1.57 percent) to 1,142.21, and the tech-heavy Nasdaq was down 42.23 (1.70 percent) to 2,438.53.
U.S. Commerce Department figures pointed to weakening consumer power as incomes fell by 0.1 percent in August for the first time in nearly two years, even as prices for goods picked up.
"It seems very unlikely that consumers can lead the economy to a faster recovery pace," economists John Ryding and Conrad DeQuadros of RDQ Economics told clients in a briefing note.
Likewise, eurozone inflation surged to a 3.0 percent pace in September, surprising analysts and sending European markets tumbling as well.