June starts ominously for teetering Wall Street
NEW YORK (Reuters) – Wall Street ended a four-day rally with its worst session since August on Wednesday and could suffer more losses in coming days as investors faced more signs the economic recovery is fading.
All 10 Standard & Poor's sectors ended more than 1 percent lower and all 30 stocks in the Dow industrials fell. Banks were the biggest decliners as the economic reports painted a glum picture for jobs and manufacturing.
The recent four-day winning streak had some investors pointing to resilience in the market, but Wednesday's decline took the S&P through its 50-day moving average, leaving the market vulnerable to more losses.
According to ADP, U.S. private employers added a scant 38,000 jobs in May, the lowest since September 2010 and far below what had been expected. Several banks cut their forecasts for Friday's non-farm payroll report from the Labor Department.
"The ADP number suggests that we'll see a weak payroll report on Friday, and it's very possible that soon people will be reducing their GDP forecasts," said Tim Speiss, head of personal wealth advisers at EisnerAmper in New York. "We could see some additional contraction."