US STOCKS-Global growth concerns trigger Wall St selloff
By Rodrigo Campos
NEW YORK Oct 9 (Reuters) - U.S. stocks slid on Thursday, erasing the previous session's sharp rally, on lingering concern about the strength of the global economy and its effect on the nascent earnings season.
German exports slumped by 5.8 percent in August, the biggest drop since January 2009, following data earlier this week that showed industrial orders and output suffered their steepest drops in more than five years.
"Investors are focused on the uncertainty about the economy," said Michael Yoshikami, CEO and founder at Destination Wealth Management in Walnut Creek, California.
"The market is selling off based on concerns there is not enough stimulus out there to support equity prices."
Adding to concerns, St. Louis Federal Reserve Bank President James Bullard said the disconnect between the market's view on the Fed's rate hike path and its own view was concerning.
"The markets are making a mistake," said Bullard, a non-voting member of the FOMC who is however seen by investors as a bellwether among Fed officials.
Energy shares were by far the weakest on the day, dropping 3.7 percent in their biggest one-day decline since April 2013. U.S. crude oil prices settled down 1.8 percent to $85.81 per barrel.
The materials sector fell 2.1 percent. Continuación...