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\n Share:<\/span><\/p>\n The S&P 500 index <\/strong>lost 0.74% last week, which was the fourth week in a row where the index declined. That performance came despite Personal Consumption Expenditures (PCE) data showing that Core inflation was growing at its slowest pace in two years.<\/p>\n On Monday, the S&P 500 was volatile but closed largely flat on the day. News that Tesla (TSLA) witnessed declining deliveries and production in the third quarter led automaker stocks lower. US automakers were already in a depressed state due to the ongoing United Auto Workers (UAW) strike. The strike spread to General Motors’ (GM) Lansing Delta Township assembly plant \u2013 where it produces the Buick Enclave and Chevrolet Traverse \u2013 and Ford’s (F) Chicago factory \u2013 where it produces the Ford Explorer, Police Interceptor and Lincoln Aviator \u2013 last Friday.<\/p>\n This week the S&P 500\u2019s performance will largely hinge on the data front\u00a0as well as yields in the US Treasury market. The US ISM Services PMI arrives on Wednesday, and this report will be followed on Friday by the Nonfarm Payrolls (NFP) reading for September on Friday. Due to a number of positive data releases on Monday, positive readings are roundly expected for the rest of the week.<\/p>\n The S&P 500, NASDAQ Composite and Dow Jones Industrial Average all opened lower on Tuesday as US Treasury yields continued to soar. The 30-year Treasury now yields 4.85%, while the 3-month Treasury yields above 5.5%.\u00a0<\/p>\n On Monday, the Institute of Supply Management (ISM) reported better readings than expected for US manufacturing. The ISM Manufacturing Purchasing Managers Index (PMI) for September led with a reading of 49, well above the expected 47.7. This corresponded well with the S&P Global Manufacturing PMI, announced on the same day, which also showed a much better reading than expected. Still, both reports showed a marginally contracting manufacturing sector.\u00a0<\/p>\n The tea leaves appear to show a manufacturing sector that may be in expansion soon enough. The ISM Manufacturing Employment Index jumped from August\u2019s reading of 48.5 to 51.2 in September. Likewise, the ISM Manufacturing New Orders Index advanced from August\u2019s result, 46.8, to September\u2019s 49.2. Readings below 50 constitute contractions, but the data is based on surveys of purchasing managers\u2019 sentiment for the future.<\/p>\n At 14:00 GMT on Wednesday, the services sector counterpart to Monday\u2019s data arrives. The ISM Services PMI is expected to show an expansion in the US index at 53.6. This would be lower than August\u2019s 54.5 reading but would still demonstrate an overall expansion.<\/p>\n With US student loan payments resuming this month, economists predict that lower consumer spending will reduce the service sector economy in the US, but that may take several months to be seen in the data.<\/p>\n By far the most significant data release of the week will be the September Nonfarm Payrolls on Friday. Analysts have given a consensus forecast<\/a> for 170K new hires in the previous month, a pullback from August\u2019s 187K.\u00a0<\/p>\n It would be unsurprising if the August figure is revised lower, however. Both June and July\u2019s data was revised lower after initially much higher readings. June\u2019s initial reading showed 209K net new hires but was later revised all the way down to 105K. July\u2019s initial 187K reading was revised down to 157K.<\/p>\n\n
S&P 500 News: Week starts off with data beats for manufacturing<\/h2>\n
September Nonfarm Payrolls will highlight whether employment is softening<\/h2>\n