Wall St suffers worst drop since June after weak data
Published on Feb 4, 2014 6:01 AM
NEW YORK (REUTERS) - United States (US) stocks slumped on Monday, with the S&P 500 suffering its worst drop since June, after weaker-than-expected data on the factory sector in the world's largest economy provided investors with the latest reason to move away from riskier assets.
US manufacturing grew at a slower pace in January as new order growth plunged by the most in 33 years, while spending on construction projects barely rose in December.
Investor sentiment soured sharply after the factory data, driving the cost of protection against a drop on the S&P to its highest level in nearly four months. The CBOE volatility index jumped 16.5 per cent to 21.44, its highest level since December 2012.
S&P e-mini futures showed 2.999 million contracts traded for the session, the largest volume since Feb 25, 2013.
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