Investing.com - Mixed data in the U.S. and Europe coupled with fears conflicts in the Middle East could slow global recovery sent Wall Street stock prices falling on Tuesday.
At the close of U.S. trading, the Dow 30 fell 0.68%, the S&P 500 index fell 0.58%, while the NASDAQ Composite index fell 0.42%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 9.06% at 14.93.
Events in the Middle East took their toll on stock prices.
U.S.-led airstrikes in Syria involving five Arab nations targeting ISIS positions stoked fears that oil prices could climb and drag on corporate profits.
While the airstrikes were branded as a success by U.S. officials, uncertainty if and when ISIS militants could be defeated repelled investors from stocks as did mixed data in the U.S. and Europe.
Research group Markit reported that the euro zone composite output index, which measures the combined output of both the manufacturing and service sectors slumped to a nine-month low of 52.3 from 52.5 in August.
The bloc’s services PMI slid to a three-month low of 52.8 from 53.1 last month, missing expectations for a 53.0 reading.
The manufacturing index ticked down to a 14-month low of 50.5 from 50.7 in August, though in line with market forecasts.
Germany’s private sector output continued to expand this month but growth in the manufacturing sector slowed to a 15-month low.
Private sector activity in France fell for a fifth consecutive month, as service-sector activity declined for the first time in three months, offsetting a slower decline in manufacturing output.
Meanwhile, Markit Economics reported earlier that its preliminary U.S. manufacturing purchasing managers’ index came in at 57.9 in September, unchanged from August and the highest since April 2010 though shy of market calls for a 58.0 reading.
A separate report showed that the Federal Reserve Bank of Richmond’s monthly manufacturing index rose to 14 this month from 12 in August, defying market forecasts for a decline to 10.
In China, the preliminary reading of the country's HSBC manufacturing index for September came in at 50.5, ahead of expectations for 50.0 and up from the final reading of 50.2 in August, though concerns that the country still battles headwinds reflected in global equities markets.
Leading Dow Jones Industrial Average performers included J P Morgan Chase & Co (NYSE:JPM), up 0.06%, Goldman Sachs Group Inc (NYSE:GS), which was down 0.10%, and General Electric Company (NYSE:GE), down 0.21%.
The Dow Jones Industrial Average's worst performers included UnitedHealth Group Incorporated (NYSE:UNH), down 1.32%, Cisco Systems Inc (NASDAQ:CSCO), down 1.10%, and Walt Disney Company (NYSE:DIS), down 1.08%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 1.62%, France's CAC 40 fell 1.57%, while Germany's DAX fell 1.58%. Meanwhile, in the U.K. the FTSE 100 fell 1.44%.
On Wednesday, markets will move on new home sales numbers in the U.S.