US equities extend losses, S&P 500 at lowest since July

Equity prices are falling on Wall Street, with main indexes trading at relevant technical levels. Risk aversion increased in the market despite better-than-expected US data. The ISM manufacturing index rose to 51.9, above the 51.7 expected. 

The S&P 500 is falling 0.73% and reached the lowest level since July while the Dow Jones is down 0.52% below the 18,050 relevant area, and closer to the 18,000 handle. A daily close below 18,000 could expose September lows and open the doors for a bigger slide. 

The decline in equity prices is taking place the day before the FOMC decision (no chance is expected tomorrow, but odds of a December rate hike are high) and a week before the US presidential election. Some polls today showed Donald Trump ahead of Hillary Clinton. 

In the forex market, the US dollar is falling sharply against the Euro, the Yen, and the Swiss franc while it is gaining versus emerging market currencies. Gold reached $1290, the highest level in almost a month. Crude oil is falling modestly 0.65% with the WTI barrel at $46.50. In the bond market, US yields continue to rise with the 10-year at 1.854%, the highest since May.