Source: Sharecast
At the close, the Dow Jones Industrial Average was down 0.19% at 46,292.78, while the S&P 500 shed 0.55% to 6,656.92, and the Nasdaq Composite saw out the session 0.95% weaker at 22,573.47.
The Dow closed 88.76 points higher on Tuesday, reversing gains recorded in the previous session as the looming risk of a possible government shutdown was offset by news of Nvidia's partnership with OpenAI.
Investors continued to keep a close eye on Washington on Tuesday, with the risk of a US government shutdown rising ahead of a 30 September deadline. The Senate last week rejected proposals from both parties to temporarily fund federal operations, raising concerns over a potential lapse in government services.
Separately, hopes for a high-level meeting between Donald Trump and Chinese President Xi Jinping this autumn appeared to fade, after US Ambassador to China David Perdue said the summit was more likely to take place next year.
On the macro front, business activity in the US slowed in September, according to preliminary estimates from S&P Global, with both manufacturing and services sectors losing momentum. The composite purchasing managers' index fell to 53.6 from 54.6 in August, undershooting market expectations and marking a second consecutive month of softer growth. Despite the pullback, the reading still pointed to the strongest quarterly expansion since late 2024, suggesting underlying resilience in the private sector.
The manufacturing PMI slipped to 52.0 from 53.0, matching forecasts and easing from its highest level in more than three years, with S&P revealing that firms reported slower output growth and a moderation in new orders, though employment levels remained broadly stable. Elsewhere, the services PMI declined to 53.9 from 54.5, reflecting weaker demand conditions and a more cautious outlook among service providers. S&P Global also noted that inflationary pressures persisted, with input costs rising at a faster pace than in August. However, selling price inflation eased slightly, indicating some margin compression.
Elsewhere, the Richmond Fed's manufacturing index fell by 10 points to -17 in September, reflecting the second-sharpest magnitude of pessimism since the start of the year. The decline was led by a sharp reduction in the volume of new orders, which brought down the volume of shipments. Elsewhere, capital expenditures slowed, in line with slowdowns in finished goods inventories and raw materials inventories.
Finally, Federal Reserve chairman Jerome Powell said that signs of labour market weakness had outweighed concerns over persistent inflation, prompting the central bank’s decision to cut interest rates last week.
Speaking after the Federal Open Market Committee's first rate reduction of the year, Powell noted that both supply and demand for workers appeared to be softening, even as near-term inflation pressures remained elevated due to the impact of tariffs. He said the committee had judged that the risks to employment now posed a greater threat to the economic outlook than stubborn price growth. At such times, Powell said the central bank's job was to "balance both sides" of its dual mandate for stable prices and low unemployment.
"Near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation," he said. "Two-sided risks mean that there is no risk-free path."
No major corporate earnings were released on Tuesday.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Intel Corp. (INTC) $29.34 2.02%
Boeing Co. (BA) $216.34 2.00%
Unitedhealth Group Inc. (UNH) $347.69 1.87%
3M Co. (MMM) $156.43 1.58%
Johnson & Johnson (JNJ) $176.38 1.36%
Chevron Corp. (CVX) $157.48 0.88%
Coca-Cola Co. (KO) $66.71 0.76%
Verizon Communications Inc. (VZ) $43.35 0.44%
International Business Machines Corporation (CDI) (IBM) $272.36 0.32%
Amgen Inc. (AMGN) $286.79 0.28%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $244.55 -2.05%
Visa Inc. (V) $338.70 -1.64%
Dow Chemical Co. (DOW) $22.86 -1.34%
Microsoft Corp. (MSFT) $509.23 -1.01%
Apple Inc. (AAPL) $254.43 -0.64%
Merck & Co. Inc. (MRK) $79.96 -0.55%
Nike Inc. (NKE) $70.93 -0.49%
Procter & Gamble Co. (PG) $152.67 -0.37%
Cisco Systems Inc. (CSCO) $67.54 -0.32%
Walmart Inc. (WMT) $102.44 -0.29%
S&P 500 - Risers
Halliburton Co. (HAL) $24.27 7.34%
McKesson Corp. (MCK) $743.17 6.36%
Cardinal Health Inc. (CAH) $154.44 4.85%
Cencora Inc (COR) $302.31 4.71%
Sempra Energy (SRE) $86.07 4.47%
National Oilwell Varco Inc. (NOV) $13.10 3.73%
VF Corp. (VFC) $14.85 3.49%
Southwest Airlines Co. (LUV) $33.35 3.22%
PVH Corp. (PVH) $87.96 3.15%
Welltower Inc (WELL) $172.58 3.06%
S&P 500 - Fallers
CenturyLink Inc. (LUMN) $5.80 -6.75%
Synopsys Inc. (SNPS) $490.32 -4.75%
Regeneron Pharmaceuticals Inc. (REGN) $567.89 -4.67%
Dxc Technology Company (DXC) $13.76 -4.47%
Oracle Corp. (ORCL) $313.83 -4.36%
Air Products & Chemicals Inc. (APD) $276.63 -3.79%
Robert Half Inc. (RHI) $33.77 -3.18%
Amazon.Com Inc. (AMZN) $220.71 -3.04%
Brighthouse Financial, Inc. (BHF) $53.50 -3.03%
PPG Industries Inc. (PPG) $106.23 -2.97%
Nasdaq 100 - Risers
CSX Corp. (CSX) $34.09 2.68%
Qvc Group Inc Series A (QVCGA) $13.07 2.15%
Intel Corp. (INTC) $29.34 2.02%
Henry Schein Inc. (HSIC) $69.21 1.90%
Fastenal Co. (FAST) $47.99 1.84%
Gilead Sciences Inc. (GILD) $114.41 1.71%
Mercadolibre Inc. (MELI) $2,500.72 1.63%
Texas Instruments Inc (TXN) $182.04 1.35%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $524.41 1.21%
Wynn Resorts Ltd. (WYNN) $127.50 1.15%
Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $125.57 -8.09%
Synopsys Inc. (SNPS) $490.32 -4.75%
Regeneron Pharmaceuticals Inc. (REGN) $567.89 -4.67%
Amazon.Com Inc. (AMZN) $220.71 -3.04%
JD.com, Inc. (JD) $32.94 -2.92%
Nvidia Corp. (NVDA) $178.43 -2.82%
Illumina Inc. (ILMN) $99.34 -2.12%
DENTSPLY Sirona Inc. (XRAY) $12.97 -2.04%
Skyworks Solutions Inc. (SWKS) $81.29 -2.02%
Tesla Inc (TSLA) $425.85 -1.93%