Investing.com – U.S. stock markets fell sharply at the open on Wednesday, after data showed that the U.S. trade deficit widened more-than-expected in June and after the Federal Reserves gloomy assessment of U.S. growth.
During early U.S. trade, the Dow Jones Industrial Average was tumbled 2.00%; the S&P 500 index fell 2.07% and the Nasdaq Composite index plunged 2.48%.
Earlier in the day, the Bureau of Economic Analysis said the U.S. trade deficit widened to a seasonally adjusted USD 49.9 billion in June, after rising USD 42.3 billion in May.
Economists had expected the trade deficit to expand to USD 42.5 billion in June.
The report said that the trade deficit increased USD 22.8 billion year-on-year.
The data followed Tuesday's announcement by the U.S. Federal Reserve of fresh stimulus measures designed to boost the faltering U.S. economy.
In the corporate sector, shares in Cisco systems were off 3.13% ahead of its second quarter earnings report, due after markets closed.
Meanwhile, shares in Amazon.com, the biggest internet retailer fell 1.84% after Chinese e-commerce firm Alibaba.com said it was interested in buying more U.S. companies to expand its overseas interests.
But shares in retailers Macy's were up 1.75% after the group posted better-than-expected second quarter profits and revised up its full year forecast.
Across the Atlantic, European stock markets were also in the red: France’s CAC 40 fell 2.30%; Germany's DAX shed 2.03%; Britain's FTSE 100 lost 2.01%; and the EURO STOXX 50 was down 2.23%.
Later in the day, the U.S. was to release data on its federal budget balance.
During early U.S. trade, the Dow Jones Industrial Average was tumbled 2.00%; the S&P 500 index fell 2.07% and the Nasdaq Composite index plunged 2.48%.
Earlier in the day, the Bureau of Economic Analysis said the U.S. trade deficit widened to a seasonally adjusted USD 49.9 billion in June, after rising USD 42.3 billion in May.
Economists had expected the trade deficit to expand to USD 42.5 billion in June.
The report said that the trade deficit increased USD 22.8 billion year-on-year.
The data followed Tuesday's announcement by the U.S. Federal Reserve of fresh stimulus measures designed to boost the faltering U.S. economy.
In the corporate sector, shares in Cisco systems were off 3.13% ahead of its second quarter earnings report, due after markets closed.
Meanwhile, shares in Amazon.com, the biggest internet retailer fell 1.84% after Chinese e-commerce firm Alibaba.com said it was interested in buying more U.S. companies to expand its overseas interests.
But shares in retailers Macy's were up 1.75% after the group posted better-than-expected second quarter profits and revised up its full year forecast.
Across the Atlantic, European stock markets were also in the red: France’s CAC 40 fell 2.30%; Germany's DAX shed 2.03%; Britain's FTSE 100 lost 2.01%; and the EURO STOXX 50 was down 2.23%.
Later in the day, the U.S. was to release data on its federal budget balance.