The United States financial market welcomed October with a rocky start as the Dow Jones industrial average on Wednesday dipped by more than 200 points amid economic problems in the U.S. and all over the world.  

The drop in stocks was reportedly due to negative economic news, which led investors to to put their moneys in golds and bonds.

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The stocks were originally driven down by news that German manufacturing was weak in September, but it was further pulled down when news broke out that U.S manufacturing was also weak.

According to Rates and Credit Training Head Tom Galoma from ED&F Man Capital, when the economic information didn't turn out as expected by investors, "everyone moved to re-position."

The selling of stocks also accelerated after news went out about the first Ebola patient diagnosed in the U.S.

Airline stocks were dumped by investors, who chose to put their investments on drug companies manufacturing experimental drugs to prevent and cure the virus.

The blue chip Dow index dropped by 1.4 percent or 238.19 points to US$16,804.71.

The Nasdaq composite dropped by 1.6 percent or 71.30 points to US$4,422.09 and the S&P's index lost 1.3 percent or 26.13 points to US$1,946.16.

The drop came after a weak economic performance last month, which marked the market's third monthly loss for 2014.

Geopolitical tensions around the world, a weak European economy and the possibility of a surge in interest rates, have led to the drop in stocks despite the high corporate earnings reported in the U.S.

The selling of stocks began after the Institute for Supply Management released its monthly manufacturing survey, which revealed that the manufacturing haws of the U.S. had been been weak.

The results showed that the index was 56.6, compared to the expected ISM index of 58.5.

Meanwhile, Airline companies was one of the hardest hit during the stock market opening on Wednesday as a result of people's fears in travelling.

American airlines lost 3 percent or US$1.09 to US$34.39.

Delta dropped 3.5 percent or US$1.25 to $34.90 and Southwest Airlines lost 3.6 percent or US$1.22 to US$32.55.

TagsUS economy