U.S. stocks fell on Monday, extending the previous session’s steep sell-off, hit by worries of a slowdown in global economic growth.
However, Wall Street’s main indexes were still above their session lows in choppy trading. The benchmark S&P 500 is now about 5 percent away from its record closing high hit on September.
Weak factory data from the United States, Europe and Japan on Friday led to the inversion of U.S. Treasury yield curve for the first time since 2007, fueling fears of a global economic downturn.
The benchmark U.S. 10-year treasury yields held near more than one-year lows on Monday, while the yield curve between three-month bills and 10-year notes was modestly inverted.
The Federal Reserve also flagged an expected slowdown in the economy last week and decided against raising interest rates this year.
“The market was over-sold on Friday because of slowing growth across the world and we are seeing some of that spill over to today,” said Marc Pfeffer, chief investment strategist at CLS Investments in New York.