US indices fall on weak housing data

The S&P 500 index fell on Monday, after the latest US housing data came in weaker than expected, fuelling concerns over the strength of the economic recovery.

Existing home sales fell by 1.8% in August, far below the 1% growth predicted by experts. In reaction, the S&P 500 index fell 0.8% to 1,994, its lowest level since early August, while the Dow Jones finished the day 0.6% weaker, and the Nasdaq fell 1.1%. All 10 primary S&P sectors traded lower, consumer discretionary being the worst performing sector, down 1.5%, as fears a slowdown in the housing market will make consumers feel less wealthy impacted sentiment. Elsewhere, housing stocks were also hit by the news, with some falling more than 2.5% on the day. The weak data suggests ...