(Il Sole 24 Ore Radiocor) - New York, 01 Aug - US shares were trading lower at midday, reversing earlier losses, after data rekindled concerns over the health of the economy.

The Institute for Supply Management's manufacturing index fell to 46.8 in July from 48.5 in June, missing expectations for a reading of 48.8.

While the US purchasing managers' index fell to 49.6 in July from 51.6 in June.

Markets had started the day higher, after the Federal Reserve indicated that it could start cutting interest rates at its next policy meeting and investors cheered upbeat results from mega cap tech stock, Meta Platforms.

The social media company reported better than expected second quarter results and provided a promising guidance, despite significant capex growth in 2025.

Also supporting sentiment, the US central bank yesterday left rates unchanged, as widely expected, but in the press conference following the decision chairman Jerome Powell said that 'a reduction in our policy rate could be on the table as soon as the next meeting in September' if data continues to show that inflation is easing.

Earnings from Apple and Amazon are slated for release after the close of markets today.

While on the data front, unit labor costs growth slowed more than expected to 0.9% in the second quarter from the first, data from the US Labor Department showed. And weekly jobless claims rose more than expected showing that the labor market is beginning to show signs of weariness.

At 1528 GMT, the Dow Jones was losing 432.73 points, or 1.06%, at 40,410.06 points.

The S&P 500 was 39.33 points, or 0.71%, lower at 5,482.97 points.

The Nasdaq was down 156.10 points, or 0.87%, at 17,446.86 points.

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(RADIOCOR) 01-08-24 17:30:12 (0651) 5 NNNN