The U.S. manufacturing sector contracted in August for the first time since 2016 - HIT by worries about a weakening global economy and rising trade tensions between China and the United States
The Institute for Supply Management - OR ISM - said Tuesday its WIDELY WATCHED manufacturing index fell to 49.1% last month. Any reading under 50 indicates a contraction.
The news comes as the new round of U.S. tariffs on Chinese goods kicked in and sent the equities market lower at the market open Tuesday. The ISM data dealt stocks a further blow, knocking the Dow down more than 400 points, and it also sent Treasury yields tumbling.