Stocks bounced back from morning losses Monday but still ended the day lower amid concerns about slowing global economic growth.
The Dow Jones Industrial Average ended down 14.76 points, or 0.1 percent, at 12,962.81, led lower by Alcoa, which fell 3.4 percent. The Standard & Poor’s 500-stock index finished 5.3 points, or 0.4 percent, lower at 1,364.33, with seven of its 10 sectors falling behind, weighed down by materials and technology stocks.
The Nasdaq Composite shed 25.71 points, or 0.9 percent, closing at 2,950.48.
The market took its cues from downbeat economic news out of China and Europe. In China, Premier Wen Jiabao said the 2012 target for economic growth would be 7.5 percent, down from the eight percent target that had been in place for eight years.
And in Europe, a reading on business activity contracted more than expected in February. In addition, there were concerns the participation rate of Greece’s private creditors in the voluntary debt-restructuring deal needed for Greece to receive bailout funds will be too low, which in effect could trigger a default.
In turning lower, the market looked past two new readings on the US economy that beat estimates: The service sector expanded at a faster pace in February, and factory orders declined less than expected.
European markets were broadly lower, with the Stoxx Europe 600 ending down 0.6 percent after the composite PMI for the 17-nation bloc fell to 49.3, below an earlier estimate and forecasts of 49.7. Readings below 50 indicate contraction.
Asian exchanges also fell, with China’s Shanghai Composite ending down 0.6 percent and Japan’s Nikkei Stock Average closing 0.8 percent lower.