Wall Street stocks tumbled and the dollar slipped on Wednesday after government data signaled the U.S. economic expansion was slowing, while gains in the euro prompted a pullback in European stock markets.
The main U.S. stock indices were off more than 1 percent midway through a session that began with a modest lift on news of a deal between Kraft Foods and Heinz Co to create North America's third-largest food company.
But the gains failed to hold, with stocks stung by data showing unexpectedly weak U.S. durable goods orders. Losses accelerated after the benchmark S&P 500 fell below a technical support level near 2,085.
The Commerce Department data showed business investment spending plans fell for a sixth straight month in February, news that could lead economists to lower their first-quarter U.S. growth estimates and cause the Federal Reserve to delay interest rate hikes.
"The dollar strength can sap earnings growth, but if you continue to see soft economic data here, a confirmation of decelerating growth, that will certainly affect the market," said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.
