U.S. stock indexes on Tuesday suffered the worst daily skid since late August to kick off trading in October and the new quarter as as a weaker-than-expected manufacturing report rattled bullish sentiment on Wall Street. The Institute for Supply Management’s manufacturing index dropped to 47.8 in September from 49.1. The slowdown reflects a retrenchment in the U.S. and global economies exacerbated by a trade war with China. Economists surveyed by MarketWatch had forecast the index to total 50.2. Any reading below 50 indicates deteriorating conditions. The Dow Jones Industrial Average DJIA, -1.17% finished 344 points, or 1.3%, lower reach 26,573 (all benchmark closing levels are on a preliminary basis). The S&P 500 index SPX, -1.21% declined 1.2% to 2,940, finishing below its 50-day moving average at 2,948.01. Stock-market analysts use moving averages as a demarcation line between bullish and bearish trends in an asset. Meanwhile, the Nasdaq Composite Index COMP, -1.26% fell 1.1% to 7,909. The decline for the S&P 500 and the Dow were the worst daily fall since Aug. 23, according to FactSet data. Meanwhile, online brokerage firms got clobbered, after Charles Schwab Corp SCHW, -2.18% on Tuesday said it would no longer charge a commission on trades of U.S. and Canada-listed stocks, exchange-traded funds, starting Oct. 7. That put pressure on brokerage rivals, with investors viewing the moves as a threat to revenues at E*Trade Financial Corp. ETFC, -1.70%, TD Ameritrade Holding Corp. AMTD, -1.31% and Interactive Brokers Group Inc. IBKR, -0.68%.
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