US equity indexes exhibited mixed performance after midday on Monday as purchasing managers' indexes for manufacturing and services revealed a slowdown in economic activity. This comes amidst discussions by top Federal Reserve officials concerning potential paths for monetary easing. The S&P 500 index witnessed a rise of 0.2%, reaching 5,711.1, while the Nasdaq Composite edged up 0.1% to 17,970.5.
The Dow Jones Industrial Average remained relatively unchanged at 42,078.5. Notably, all sectors experienced intraday gains, except healthcare and technology, with consumer discretionary and utilities leading the upward momentum. In the realm of economic indicators, September's flash reading for manufacturing conditions from S&P Global recorded a decline to 47.0, marking a 15-month low, down from 47.9 in August.
This figure also fell short of the 48.6 recorded in a survey compiled by Bloomberg. Furthermore, the services conditions index dropped to a two-month low of 55.4 in September, down from 55.7 in August, although it slightly surpassed expectations of 55.2. The composite index similarly fell to a two-month low at 54.4 in September from 54.6 in August. Amid these developments, Federal Reserve Bank of Atlanta President Raphael Bostic addressed a conference on Monday, asserting that the current economic conditions warrant a reduction in interest rates towards the estimated 'neutral' level in a cautious, patient, and data-driven approach. On the contrary, Federal Reserve Bank of Chicago President Austan Goolsbee emphasized that interest rates must be 'significantly' lowered to safeguard the labor market and bolster economic stability. Most US Treasury yields experienced an uptick, with the 10-year yield rising by 1.3 basis points to 3.74%. In corporate news, General Motors ($GM) announced plans to lay off 1,695 workers at its Fairfax assembly facility in Kansas.
This information was reported by Reuters on Saturday, citing a Worker Adjustment and Retraining Notification notification. Consequently, shares for the automaker plummeted by 3.4% intraday, marking it as the worst performer on the S&P 500. In another development, Apollo Global Management ($APO) has proposed an investment of up to $5 billion in Intel ($INTC), according to Bloomberg News, relying on insights from unnamed sources familiar with the situation.
This news positively influenced Intel shares, which rose by 2.7%, making it the top performer on the Dow. In terms of commodities, West Texas Intermediate crude oil futures dipped by 1.5%, settling at $69.87 a barrel..