The S&P 500 ETF (SPY) was just barely able to close in positive territory on Friday, while the Nasdaq 100 ETF (QQQ) finished in the red.
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The indexes fell victim to early morning pressure after September’s Services Purchasing Managers’ Index (PMI) fell to 50.0, missing the estimate of 51.7. A reading above 50 indicates expansion, while a reading below 50 signals contraction, placing the index in a vulnerable position. Furthermore, the Business Activity Index dropped to 49.9 from 55, marking the lowest reading since May 2020 and falling into contraction territory. The labor market remains shaky as well, with an Employment Index reading of 47.2.
“Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges,” said ISM Chair Steve Miller. “Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff.”
The Bureau of Labor Statistics (BLS) usually releases its monthly jobs report on the first Friday of each month. However, the agency has suspended the data this month due to the government shutdown, leaving the Fed without key labor data ahead of the October 28-29 Federal Open Market Committee (FOMC) meeting.
“Businesses, families, policymakers, markets, and even the Federal Reserve are flying blind at a key juncture in America’s economic resurgence because the Democrats’ government shutdown has halted the release of key economic data,” said White House spokesman Kush Desai.
The Consumer Price Index (CPI) inflation report, scheduled for release on October 15, is also at risk of being delayed if the shutdown drags on.
After sharing a 20-point peace plan to resolve the Gaza war earlier this week, Trump has now provided Hamas with a deadline of Sunday, October 5 at 6 p.m. Eastern Time to sign the deal. If not, Hamas faces “all HELL, like no one has ever seen before,” Trump warned in a Truth Social post.
Finally, U.S. Treasurer Brandon Beach confirmed in an X post that Trump will be featured on a new $1 coin honoring America’s 250th birthday that will be minted starting in 2026. An initial draft shows Trump’s face on the front of the coin, while the back shows him standing in front of a U.S. flag alongside the words “FIGHT, FIGHT, FIGHT.”
The S&P 500 (SPX) closed with a less than 0.01% gain, while the Nasdaq 100 (NDX) fell by 0.43%.
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