Stocks, Bond Yields Plunge After Dismal Manufacturing Data

A 2nd consecutive contraction in US Manufacturing, according to ISM, has sparked selling in stocks and a bid for safe-havens like bonds and gold.

ISM respondents

“General market is slowing even more than a normal fourth-quarter slowdown.” (Fabricated Metal Products)

“Business has been flat for us. Year-over-year growth has slowed dramatically.” (Miscellaneous Manufacturing)

“We have seen a reduction in sales orders and, therefore, a lower demand for products we order. We have also reduced our workforce by 10 percent.” (Plastics & Rubber Products)

Stocks tanked…