Key Takeaways
- U.S. S&P Global PMI data for September indicated a slowdown in economic activity, with Manufacturing, Services, and Composite indices all falling below estimates and previous month's figures, signaling a second consecutive month of softer growth.
- Major U.S. stock indices opened mixed, with the Dow Jones (DJI) up 0.15%, while the S&P 500 (SPX) and Nasdaq (IXIC) saw slight declines of 0.02% and 0.04% respectively.
- Meta (META) has launched a Super PAC to counter AI regulation in California, aiming to support candidates who advocate for less stringent oversight in the artificial intelligence sector.
- Boeing (BA) stock climbed 1.8% after securing an $8 billion plane order from Uzbekistan Airways and engaging in ongoing sales discussions for a "huge" order with China.
- CME crude oil futures have remained largely range-bound over the summer, with analysts suggesting downside risk is relatively limited despite a bearish outlook.
U.S. Economic Activity Shows Signs of Cooling in September
The U.S. economy experienced a notable deceleration in September, according to the latest S&P Global Purchasing Managers' Index (PMI) flash estimates. The Manufacturing PMI registered 52.0, falling short of the 52.2 estimate and down from August's 53.0. Similarly, the Services PMI came in at 53.9, slightly below the 54.0 estimate and a decrease from the prior month's 54.5.
The Composite PMI, which combines both sectors, also declined to 53.6 in September from 54.6 in August, missing the 54.0 estimate. This data indicates a second consecutive month of softer growth, although the third quarter as a whole still represents the strongest average monthly expansion since late 2024. The slowdown was accompanied by weaker demand growth and slower hiring across both manufacturing and service sectors.
Mixed Opening for U.S. Stock Markets
Major U.S. stock indices saw a mixed start to trading. The Dow Jones Industrial Average (DJI) showed a modest gain, rising 68.06 points, or 0.15%, to reach 46,449.60 after the market open. In contrast, the S&P 500 (SPX) edged down 1.05 points, or 0.02%, to 6,692.70, while the Nasdaq Composite (IXIC) also saw a slight dip of 9.81 points, or 0.04%, settling at 22,779.16. This mixed performance follows a period where all three indexes had recently achieved new all-time highs.
Crude Oil Futures Remain Range-Bound
CME crude oil futures have largely gone nowhere this summer, experiencing only a brief spike in late July. Despite a prevailing bearish sentiment among some analysts, the downside risk for crude oil prices is considered relatively limited. WTI Crude Oil futures have recently traded lower for three straight sessions after reaching a two-week high, as demand concerns outweighed supply concerns.
Corporate Developments: Meta, Boeing, and Revolut Make Headlines
In corporate news, Meta (META) has launched a Super PAC named "Mobilizing Economic Transformation Across California" to actively fight against AI regulation. The company aims to support political candidates who favor less stringent oversight of artificial intelligence, citing concerns that heavy-handed state regulations could stifle innovation and hinder California's leading position in AI development.
Boeing (BA) saw its stock rise by 1.8% following a significant $8 billion plane order from Uzbekistan Airways for up to 22 787 Dreamliners. The aerospace giant is also reportedly in the final stages of negotiations with China for a "huge" aircraft order, a deal considered very important to the U.S. President and Boeing's presence in the Chinese market.
Fintech company Revolut announced ambitious plans to spend $13 billion on its push to acquire 100 million users, reinforcing its global expansion strategy. The company recently opened its new global headquarters in London and aims to expand into over 30 new markets by 2030.
Trump Rejects Democratic Demands Amid Funding Standoff
On the political front, President Donald Trump stated on Truth Social that he would not meet with "Minority Radical Left Democrats" regarding government funding, calling their demands "unserious and ridiculous". Trump claimed that Democrats are threatening a government shutdown unless they receive "over $1 Trillion Dollars in new spending" for programs he opposes. He further asserted that his election victory was due to opposition to "Radical Left Views and Policies," reiterating his claim of winning "all seven Swing States, and the Popular Vote, IN A HISTORIC LANDSLIDE". This stance signals potential challenges for avoiding a government shutdown as the funding deadline approaches.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.