Stocks fell on Friday, putting equities on track for their worst quarter since 2008, as economic data from China and Europe fueled fears of a global economic slowdown.
The S&P 500 index has lost nearly than 13 percent this quarter and 5.6 percent in September, leaving the benchmark index on pace for its fifth monthly decline.
Stocks have been weighed down by signs of an global economic
slowdown and uncertainty about how euro zone leaders would prevent a Greek default.
The Dow Jones industrial average fell 57.18 points, or 0.51 percent, to 11,096.80. The Standard & Poor's 500 Index dropped 9.29 points, or 0.80 percent, to 1,151.11. The Nasdaq Composite Index lost 17.75 points, or 0.72 percent, to 2,463.01.
Through Thursday, the MSCI All Country World Index had lost about $4.7 trillion in market capitalization and the S&P 500 has lost about $1.45 trillion in market cap during this quarter.
China's manufacturing shrank for the third month in a row and the longest contractional streak since 2009 in a troubling sign for the world economy, which has looked to China as a rare source of expansion.
China data, European inflation numbers were not good, obviously the whole Greek thing is still ongoing, so that cloud of uncertainty is certainly not lifted, said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
As long as that is hanging over everyone's head, you are not going to get that huge 'I need to get in right now.' There are too many issues now.
Euro zone annual consumer prices unexpectedly rose in September to 3.0 percent, data showed on Friday, and followed surprisingly higher inflation in Germany.
In what may be a precursor to the upcoming quarterly earnings season, Ingersoll Rand Plc tumbled 17.3 percent to $26.42 in after the industrial conglomerate cut its third-quarter and full-year earnings forecast to below market estimates. The Morgan Stanley cyclical index dropped 2.1.
Financials also stumbled, with Morgan Stanley off 5.9 percent to $14.20 on worries about its exposure to European banks. The NYSEAmex broker/dealer index lost 3 percent.
Markets showed little reaction two U.S. economic reports that were stronger than analysts expected.
Business activity in the U.S. Midwest grew more than expected in September, buoyed by new orders and a jump in employment.
The Institute for Supply Management-Chicago business barometer surprisingly rose to 60.4 in September from 56.5 in August. Economists had forecast a September reading of 55.5.
U.S. consumer sentiment improved in late September but worries persisted about jobs and finances, which could curb household spending in the coming months, the Thomson Reuters/University of Michigan final September reading of the overall index on consumer sentiment showed.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)