But investors saw the value in the S & P 500, after touching its lowest level since December, and the benchmark U.S. finished higher in Cape Town a series of seven days lost.
The data showed that U.S. growth slowed in the services sector in July, just days after manufacturing data pointed to a slowdown in the expansion.
Investors sought refuge in U.S. bonds and long gold, while a step in stopping the recent strength of the Swiss franc was observed only work temporarily. Fear of U.S. and global economy has pushed the benchmark Treasury yields to levels not seen since early November.
Wednesday weak service sector data from Asia, Europe and the USA followed by signs of slower growth in manufacturing in many countries on Monday.
"It's not just [U.S.], the whole world. I can not remember now the last good data point," said Uri Landesman, president of Platinum Partners in New York.
Investors fear that their fiscal consolidation in Europe and the United States at a time of stagnation of the world make an already weak global recovery.
Gold hit a record for a second consecutive day, driven by deepening fears about the spread of the debt crisis and its impact on European regional growth, while the data showed a number of central banks bought the precious metal in June
Spot gold was quoted at U.S. $ 1659.30 the last ounce, after reaching a record $ 1,672.65 oz.
30 years U.S. bond price rose 12/32 for the production of 3.89%, the day after tomorrow is less than 4% for the first time since November. 10-year benchmark U.S. Treasury note was unchanged and the yield 2.6130%.
While the flight to safety caused U.S. bonds up, the markets gave some relief to Italian bonds as the debt crisis led to increasingly larger area government bond market at a turning point.
Italian 10 year benchmark bond prices edged up, but the output was still over 6%.
At the close of the New York Stock Exchange, received the Dow Jones industrial average 29.82 points, or 0.25%, to 11,896.44. S & P 500 was 6.29 points, or 0.50%, to 1260.34. Nasdaq Composite Index was 23.83 points, or 0.89%, to 2693.07.
Composite volume, more than 10.5 billion shares, was the highest since March.
Stocks erased most of their losses after two former senior officials of the Federal Reserve's conditional approval of a new round of purchases of bonds by the Fed to start an economic recovery signal, according to the Wall Street Journal.
The previous round, known as the QE2, was considered the main driver of rising stock prices and commodity prices in late 2010 and the first half of this year.
MSCI World stock index fell 0.7% to its lowest since mid-March, down for sixth straight session. European shares fell 2% to its lowest closing level for almost a year and U.S. dollar denominated term Nikkei was flat.
Energy and industrial metals fell as the favorable economic outlook. Brent fell by 2.7% and U.S. crude fell 1.9% while copper lost 1.4%. Reuters / Jefferies CRB commodities lost 1.3%.
Data showing a price of accumulation of U.S. oil reserves crude oil under additional pressure.
The foreign exchange market, the Swiss franc retreated from record highs after the Swiss central bank unexpectedly cut interest rates to combat rising. The decrease is seen as temporary, though, as global growth is prompting investors to perceived safety of the Swiss currency.
"I'm skeptical that the SNB will share more than one passenger" psychological "impact negatively on the Swisse if we remain in a world of risk aversion," said Alan Ruskin, head of global currency strategy at Deutsche Bank in New G10 York.
"With the U.S. dollar does not play its traditional role as a vehicle of flight to quality, escape a variety of risky assets are channeled and concentrated in very few alternatives," he said.
The euro hit a record low of 1.0793 francs is a trading platform EBS, just before the Negotiating Group released. And 'the last trading price of 1.11022 francs, an increase of 1.66%, slightly out of session at most 1.1146.
The SNB said the franc was "massively exaggerated" keep alive the prospect of intervention.
It has also sharpened the focus on the Japanese authorities have warned that once were more comfortable with the rise of the yen.