New York (AFP)

The New York Stock Exchange ended sharply in the red Tuesday, weighed down by the sharp contraction of manufacturing activity in the United States in September, reviving fears of a recession.

Its flagship index, the Dow Jones Industrial Average, lost 1.28% to 26,573.04 points.

The Nasdaq, with strong technological color, dropped 1.13% to 7,908.68 points and the expanded index S & P 500 dropped 1.23% to 2,940.25 points.

While they started the session up, the main indices of the New York place fell sharply shortly after the publication of the index of the professional association ISM showing that the activity of the US manufacturing sector had further declined in September to fall to a 10-year low.

"It has changed the game and it clearly shows that the markets fear a recession," says Karl Haeling of LBBW.

For the expert, the increase in bets on a new lowering of the key rates of the US Central Bank is one of the indicators of a possible recession.

According to a tool on the CME trading platform, nearly two-thirds of brokers are banking on a drop in overnight rates at the end of the month. They were less than 40% to make this prediction the day before.

The Fed and its president Jerome Powell were again the object of the wrath of US President Donald Trump.

"As I predicted, Jay Powell and the Federal Reserve have allowed the dollar to become so strong, especially against ALL other currencies, that our manufacturers are affected," he wrote.

"All eyes are now on trade." The impact of the Beijing-Washington trade war, which is affecting the global economy, is beginning to be felt in the United States, "says Haeling.

Trade talks at the highest level are expected to be held next week in Washington between the world's two largest economies.

"It seems that the Chinese are not going to make the major concessions that the United States is waiting for, it is likely that they will wait until the US presidential election of 2020," Mr. Haeling warns.

In the bond market, the 10-year US debt rate fell to 1.635% at around 20:25 GMT against 1.665% the day before closing.

© 2019 AFP