The Dow has fallen sharply for two straight days, starting off October trading by losing over 800 points. This major drop was instigated by the most recent US manufacturing growth report, which saw its lowest reading in the past 10 years. The September reading of the Institute of Supply Chain Management came in at 47.85%, signaling a contraction in manufacturing growth in the US. The S&P 500 is also down about 3% the past two days, marking its fourth-worst start to October in its history.
This shaky start to October has economists fearing a sudden crash similar to last year’s fourth quarter crash. The diminishing US manufacturing sector accompanied by presidential impeachment concerns has combined to create huge risk in the present state of the market.