Aug. 1 (Bloomberg) -- U.S. stocks slid after a gauge of American manufacturing trailed economists’ forecasts, wiping out an early rally triggered by speculation lawmakers will vote in favor of a plan to raise the debt ceiling.
The Standard & Poor’s 500 Index lost 0.3 percent to 1,288.44 at 10:02 a.m. in New York after climbing as much as 1.2 percent earlier. Ten-year Treasury yields fell five basis point to 2.75 percent. The Dollar Index rose 0.2 percent, erasing a 0.4 percent drop, as the euro slipped 0.7 percent to $1.4304. Oil trimmed gains and gold pared losses.
The S&P 500 rallied earlier, rebounding from its worst weekly loss in a year, as lawmakers prepared to vote on a deal to increase the federal debt limit and avoid default.
The Institute for Supply Management’s factory index fell to 50.9 in July from 55.3 the prior month. Economists projected the gauge would drop to 54.5, according to the median forecast in a Bloomberg News survey.
Manufacturing indexes from Asia to Europe fell last month as demand weakened and the global recovery from recession lost momentum, other reports showed. U.K., Russian and Australian manufacturing shrank, while the pace of factory growth slowed in Europe and China, according to surveys.
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