US stocks sink on weak jobs, manufacturing report

New York, June 2: US stocks sank Wednesday after four straight gains, as the latest data on jobs and manufacturing markets provided fresh evidence of a weaker economic recovery, Xinhua reported.

Automatic Data Processing Inc., a payrolls processor said before the opening bell that US private employers added a scant 38,000 jobs in May, far below expectations and also the lowest level since September 2010.

Adding to pressures, the expansion in the manufacturing sector slowed more than expected to its lowest level in more than one and half years, according to the Institute for Supply Management (ISM).

Mounting concerns over the economic outlook also overshadowed positive progresses in Europe on Greek bailout discussion. Meanwhile, some of the investors still worried about Greek’s financial system, which piled up with massive public debt.

The Dow Jones industrial average plunged 147.85 points, or 1.18 percent, to 12,421.94. The Standard & Poor’s 500 dropped 15.17 points, or 1.13 percent, to 1,330.03. The Nasdaq Composite Index declined 26.62 points, or 0.94 percent, to 2,808.68.

IANS