Major Averages Move Sharply Lower In Early Trading

(RTTNews) - Continuing the recent wild ride by the markets, stocks have moved sharply lower in early trading on Tuesday. The major averages have dropped firmly into negative territory, further offsetting the recovery rally that was seen last week.

The early weakness on Wall Street reflects ongoing concerns about the global economy following the release of some disappointing Chinese economic data.

Revised estimates released by Markit showed that the Chinese manufacturing sector contracted by the most in six years in August.

A separate report also showed that the Chinese service sector expanded at the slowest pace in the current thirteen-month growth sequence.

Adding to the worries, the Institute for Supply Management said its index of U.S. manufacturing activity fell to its lowest level in over two years in August.

Energy stocks have shown a substantial move to the downside in early trading, dragging the NYSE Arca Oil & Gas Index down by 4.1 percent. The weakness in the sector comes as crude oil for October delivery has plunged $3.01 to $46.19 a barrel.

Steel, financial, and computer hardware stocks are also seeing significant weakness amid a broad based sell-off on Wall Street.

The major averages have moved roughly sideways in recent trading, stuck solidly in the red. The Dow is down 364.65 points or 2.2 percent at 16,163.38, the Nasdaq is down 80.45 points or 1.7 percent at 4,696.06 and the S&P 500 is down 42.54 points or 2.2 percent at 1,929.64.