Dow drops after reports of sluggish US growth

NEW YORK (AP) — U.S. stocks are falling sharply in midday trading, pushing the Dow Jones industrial average down more than 200 points, as investors react to reports of sluggish growth in the U.S. economy.

The decline adds to losses racked up by the market in January. The Dow was down 183 points, or 1.2 percent, to 15,516 at 11:26 a.m. Eastern time Monday. The index fell as much as 206 points earlier. The Standard & Poor's 500 index lost 22 points, or 1.2 percent, to 1,760. The Nasdaq slipped 58 points, or 1.4 percent, to 4,046.

A report Monday showed that U.S. manufacturing barely expanded last month. Construction spending rose modestly in December, slowing from healthy gains earlier. Fresh signs of weakness in China's manufacturing sector added to lingering worries about developing economies.

Related Headlines

  • Futures rising on strong corporate performances

    Stock futures are rising as quarterly reports from U.S. corporations continue to surpass expectations. The Federal Reserve will also release its monetary policy statement ... 

  • Futures dip as US economy shows strength

    Stock futures slumped over apprehension that the U.S. would begin winding down its economic stimulus program after a surprisingly strong jobs report Friday. The Labor ... 

  • Steven Kaplan

    Better news on the US economy drives stocks higher

    The stock market is closing higher as encouraging news about the U.S. economy outweighs concerns that interest rates could start climbing sooner than many people had expected. 

  • Gregory Rowe

    An early gain fades on Wall Street

    An early surge on the stock market evaporated Friday, as health care stocks tugged major indexes down. Biotech companies were especially hard-hit after U.S. 

Find the best rates

Find your future job here