S&P 500 Plunges 4.2% as September Opens with Worst Trading Day Since 2022
PUBLISHED Aug 31, 2026, 3:12 PM ET
United States stock markets experienced their sharpest single-day selloff in over two years on the first trading day of September. The S&P 500 plummeted 4.2 percent to close at 5,247, while the Dow Jones Industrial Average fell 3.8 percent and the tech-heavy Nasdaq Composite dropped 5.1 percent. The broader market rout erased approximately 1.8 trillion dollars in market capitalization. Declining equities outnumbered advancers on the New York Stock Exchange by a ratio of twelve to one, reflecting widespread liquidation across all eleven S&P sectors. Technology giants, financial institutions, and consumer discretionary firms led the losses. The downturn was triggered by fresh economic data showing U.S. manufacturing activity contracted for the sixth consecutive month, with the Institute for Supply Management manufacturing index falling to 46.2 in August. The employment component dropped to 44.3, stoking recession fears and driving investors into safe-haven assets such as U.S. Treasury bonds and gold.
By Lauren Mitchell | JQJO News
Left: Blames corporate overvaluation and delayed Federal Reserve interest rate cuts. Center: Focuses strictly on macroeconomic manufacturing indicators and market liquidity metrics. Right: Attributes economic decline to excessive federal spending and regulatory policies.
Institute for Supply Management released August manufacturing index data on September 3, 2024. https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/august/
Coverage of Story:
From Left
Wall Street suffers worst day in two years after alarming factory data
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S&P 500 Plunges 4.2% as September Opens with Worst Trading Day Since 2022
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Stock market crashes as dismal manufacturing data sparks severe economic panic
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