A dismal report on consumer confidence has raised fears about consumer spending in the US. A monthly survey conducted by the University of Michigan was revised lower to 62.6 for April, its lowest level in 26 years.
Market expectations were for the initial estimate to remain unchanged at 63.2 in April, down from 69.5 in March.
The sharply lower April reading rattled investors as consumer spending makes up about two-thirds of US economic output and many economists believe the world's largest economy has already fallen into recession.
