US stocks fall with equities down for a fifth consecutive session

US stocks fell, with equities down for a fifth consecutive session, as raw-material and energy shares retreated amid more signs of slowing in China while biotechnology companies extended last week’s selloff.

The Nasdaq Biotechnology Index sank 2.5 per cent, paring a drop of as much as 4.3 per cent, after its worst week since 2011.

The Standard and Poor’s 500 Index fell 1.2 per cent to 1,909.11 New York, its lowest since September 1st.

The Dow Jones Industrial Average lost 142.78 points, or 0.9 per cent, to 16,171.89.

The Nasdaq Composite Index dropped 1.4 per cent.

“There’s no conviction in this market whatsoever and there hasn’t been for a very long time,” said Michael Ingram, a market strategist at BGC Partners in London.

“If the Fed appears to be so hesitant, why should traders who are putting money to work on a daily basis be any more confident? The other issue is what’s going on in China.”

Equity markets have been turbulent in recent weeks amid confusion over the Federal Reserve’s tightening policy and concern over a slowdown in Asia.

Data on Monday showed profits of Chinese industrial companies fell the most since the country’s government began compiling data in 2011.

Biotechnology shares tumbled on Friday, offsetting gains fueled by Fed chair Janet Yellen’s reassurances that turbulence in emerging markets won’t harm US growth.

Federal Reserve Bank of New York president William C. Dudley said on Monday that the central bank will “probably” raise interest rates later this year despite uncertainties over global growth.

“I think that the economy is doing pretty well,” Mr Dudley said at an event in New York. He said he expected growth in the second half will be “a little bit weaker” than in the first half.

US household spending

A report on Monday showed US household spending climbed more than forecast in August and incomes also rose as the biggest part of the US economy continued to power past a global slowdown.

Separate data showed contract signings to purchase previously owned US homes unexpectedly declined in August for just the second time this year, signaling residential real estate might have difficulty building on recent momentum.

“Supposedly Yellen had clarified everything on Thursday, and yet the market still went down,” said Matt Maley, an equity strategist at Miller Tabak in New York. “It shows me that there are issues other than the Fed causing this decline. Biotechs have rolled over. The market narrowed through the summer, and we still had a couple of groups that were still acting pretty well, but they rolled over. We’re losing what little leadership we had left.”

The Nasdaq Biotech Index slid into a bear market on Friday amid its worst weekly decline in four years. The rout was sparked by a tweet last Monday from Democratic presidential hopeful Hillary Clinton suggesting there may be “price gouging” in the market for prescription drugs.

The SandP 500 is down 7.4 per cent in the third quarter, poised for its worst fall since 2011, and on track on Monday for its lowest close in a month.

The benchmark is 10 percent below its all-time high set in May.