Positive manufacturing and construction developments cause U.S. stocks to recover from drops
During the previous week, the Standard and Poor’s (S&P) 500 Index, on the heels of debt issues in Europe and around the globe, fell by 0.4 percent. The business index managed to bounce back from these losses on October 3, based on improvements in the manufacturing and construction industries of the U.S., according to Bloomberg.
The news source reports that the losses experienced last week were in keeping with the general performance of the S&P 500 during the third quarter of 2011 – the index dropped by a total of 13 percent over the course of that three-month period. This is the largest drop experienced in the S&P 500 since the final quarter of 2008, making today’s recovery even more significant.
An increase of 1 percent in the Institute for Supply Management (ISM) factory index, from 50.6 in August to 51.6 in September, is being cited as the main reason for the S&P 500’s rebound, as it dropped less than 0.5 percent to 1,1126.34 once the ISM data was released. A 1.4 percent increase in construction spending was also seen as beneficial.
According to the Wall Street Journal, the Dow Jones Industrial Index also lost 28 points on Monday morning before the ISM data surfaced.