The S&P 500 Index ($SPX) (SPY) concluded Friday with a slight gain of +0.01%, while the Dow Jones Industrials Index ($DOWI) (DIA) increased by +0.51%. Conversely, the Nasdaq 100 Index ($IUXX) (QQQ) experienced a decline of -0.43%. Additionally, December E-mini S&P futures (ESZ25) edged up by +0.01%, but December E-mini Nasdaq futures (NQZ25) saw a decrease of -0.44%.
On Friday, stock indexes ended mixed, though the S&P 500, Nasdaq 100, and Dow Jones Industrials achieved new record highs. Initially, the markets rallied on the back of gains from chipmakers and AI infrastructure stocks, spurred by optimism about the AI sector’s potential to enhance corporate earnings. However, rising bond yields led to long liquidations in tech stocks sensitive to interest rates. The yield for the 10-year T-note rose by +4 basis points to 4.12%, following hawkish remarks from Chicago Fed President Austan Goolsbee and Dallas Fed President Lorie Logan, who expressed caution regarding further rate cuts from the Fed.
-
Analysts Continue to Increase Price Targets for Microsoft Stock – MSFT Remains Affordable
-
Bookmark This Essential Stock Watchlist as the Trump Administration Invests in Rare Earth Metals
Despite some positive movements, stock indexes retreated from their highs on Friday and traded mixed after the September ISM services index fell more than anticipated to a four-month low. Furthermore, indications of inflationary pressures in the service sector negatively impacted bond prices and stocks, as the September ISM services price paid sub-index rose unexpectedly. Additionally, the ongoing US government shutdown, which entered its third day on Friday, contributed to the market’s cautious sentiment.
The shutdown has resulted in postponements of government report releases, including the monthly payroll report that was due on Friday. A prolonged shutdown might delay the release of inflation data, which is expected on October 15. The White House has indicated that if the shutdown continues, it could lead to significant layoffs in government programs that are not aligned with President Trump’s priorities. Bloomberg Economics predicts that around 640,000 federal workers may be furloughed during the shutdown, which could increase jobless claims and elevate the unemployment rate to 4.7%.
The US September S&P composite PMI was adjusted upward by +0.3, reaching 53.9, compared to the previous report of 53.6.
The US September ISM services index experienced a decline of -2.0, hitting a four-month low of 50.0, which was below the anticipated figure of 51.7. Additionally, the September ISM services price paid sub-index unexpectedly increased by +0.2 to 69.4, surpassing predictions for a decline to 68.0.
