US stocks plunge as economic recovery loses momentum

Markets were mixed on Wednesday.

The S&P 500 plunged 2.4 percent but the STOXX Europe 600 rose 0.6 percent. The Nikkei 225 dipped 0.1 percent.

Data from IHS Markit on Wednesday showed that its flash US composite PMI slipped to 54.4 this month from 54.6 in August while its flash eurozone composite PMI fell to 50.1 in September from 51.9 in August.

“The news flow has been negative on the virus and negative on growth,” said Ben Randol, senior FX strategist at BofA Securities.

“We’re at that phase where it’s harder to get that next bit of the recovery, that next bit of the reopening in place,” said Jason Pride, chief investment officer of private wealth at Glenmede.