Global stocks were unable to sustain their rally of the previous week and fell on Monday on concerns of a slowing growth in manufacturing, snapping four days of continuous gains.
Data from the Federal Reserve's Empire State manufacturing index for the New York region showed that it fell for the second straight month in September. The index reached the lowest level since April 2009.
Last week the U.S. Fed's measures for a third round of quantitative easing had held out fresh hopes of recovery in the economy and a boost for investment.
The Dow Jones Industrial Average finished off 40.27 points (0.30 per cent) at 13,553.10.
The S&P 500 slid 4.58 (0.31 per cent) to 1,461.19, while the tech-rich Nasdaq shed 5.28 (0.17 per cent) at 3,178.67.
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On Monday sentiments were also hit by freak trades in the oil markets when crude oil prices plunged in just a few minutes of trading and for no apparent reason. U.S. October crude oil futures lost more than 2 percent on Monday to $96.62 a barrel.
There are other concerns surrounding the economy. According to economists and analysts the quantitative easing package could have an adverse impact on oil and fuel prices while sentiment against the U.S. is rising in the Middle East region.
Protesters in Afghanistan and Indonesia burnt U.S. flags and chanted "Death to America" on Monday in renewed demonstrations over a film mocking the Prophet Mohammad.
All these could have a long-term impact on stock prices.
financial stocks were one of the major losers on Monday with Bank of America losing 2.5 percent to $9.31.
It was a day marked by light volumes across most of the exchanges with many traders having gone on holiday for the Jewish New Year.
Glu Mobile Inc.(NASDAQ:GLUU) shares climbed 7.65% and closed at $5.35 in the previous trading session. The company last week said that it expects a big boost to its sales from the success of Apple Inc's iPhone 5, which analysts predict will sell 33 million units this quarter. The company expects about two-thirds of its revenue this year from Apple's iOS mobile platform.
Spectrum Pharmaceuticals, Inc.(NASDAQ:SPPI) shares climbed 7.49% and closed at $12.91 in the previous trading session. The company announced that an overview of the Company's business strategy and commercial and development-stage programs will be given at the UBS Global Life Sciences Conference being held at The Grand Hyatt in New York City. The Company presentation is on Thursday, September 20, 2012, at 7:30 AM ET.
Additionally, SPPI announced the appointment of Ken Keller as Executive Vice President, Chief Operating Officer. Keller will have global responsibility for leading Commercial Operations, Medical and Clinical Development and Pharmaceutical Operations.
Tesla Motors Inc(NASDAQ:TSLA) shares climbed 7.07% and closed at $32.54 in the previous trading session. TSLA’s stock was upgraded by Morgan Stanley from an “underweight” rating to an “overweight” rating in a research note issued today. The firm currently has a $50.00 price target on the stock, up from their previous price target of $45.00.