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U.S. stocks skid; Russell 2000 in correction territory
NEW YORK (MarketWatch) — U.S. stock investors turned away from stocks on Wednesday and piled into safe havens such as Treasurys, sending the main benchmarks sharply lower.

Broad-based declines on Wall Street were led by tech and small-cap stocks. The Russell 2000 index lost 1.5% and is now in correction territory, defined as a drop of more than 10% from a recent peak, in this case on March 4.

The Dow Jones Industrial Average COMP, -1.59% fell 238.19 points, or 1.4%, to 16,804.71 and undercut its 50-day moving average. The blue-chip index moved by triple-digits in six out of past eight sessions. The index is down 2.75% from its record close set Sept. 19.

Wednesday’s skittishness appeared to have stemmed from upbeat employment and manufacturing data for September, which although points to positive momentum for the U.S. economy, continued to fuel worries that the Federal Reserve may raise interest rates sooner than later.

Private employers added 213,000 new jobs in September, and many view the report as a proxy for the non-farm payrolls data due on Friday. Manufacturing in the U.S. is still expanding, albeit slightly slower. Both PMI and ISM indexes ticked down, however indicated growth.

The upbeat economic data should be a positive, but ironically, have investors fretting they may need to retool their holdings.

The S&P 500 SPX, -1.32% fell 26.13 points, or 1.3%, to 1,946.16, with materials and industrials leading the losses. Only the utilities sector stayed in positive territory. The Nasdaq Composite shed 71.30 points, or 1.6%, to 4,422.09.

Eyes on ADP, manufacturing: Private-sector hiring picked up slightly in September, marking the sixth consecutive month of above-200,000 job gains, according to data released Wednesday. Economists will use this data as a guide leading up to Friday’s nonfarm-payrolls report, where expectations are for a gain of 220,000 jobs.

U.S. manufacturing companies grew at slower but still rapid pace in September, a survey of executives found. The final Markit reading of U.S. manufacturing conditions in September fell slightly, but still, the index is just a hair below the highest level in more than four years. Separately, outlays for U.S. construction projects unexpectedly fell in August, the U.S. Commerce Department reported. http://www.marketwatch.com/story/us-stocks-futures-flatten-ahead-of-adp-employment-ism-2014-10-01