Stocks Settle Mixed as Tech Rally Loses Steam

Economic Indicators - The US September ISM services index fell by 2.0 to a 4-month low of 50.0, which was weaker than the expected 51.7 [1] - The ISM services price paid sub-index unexpectedly rose by 0.2 to 69.4, contrary to expectations of a decline to 68.0 [1] - The US September S&P composite PMI was revised upward by 0.3 to 53.9 from the previously reported 53.6 [1] Market Reactions - Stock indexes traded mixed after the drop in the ISM services index, with the S&P 500, Nasdaq 100, and Dow Jones Industrials posting new all-time highs earlier in the day [3][4] - Higher bond yields led to long liquidation in interest rate-sensitive technology stocks, with the 10-year T-note yield rising by 4 basis points to 4.12% [4][9] - The ongoing US government shutdown negatively impacted market sentiment, contributing to the mixed performance of stock indexes [3] Corporate Earnings Expectations - More than 22% of S&P 500 companies provided guidance for Q3 earnings that are expected to exceed analysts' expectations, marking the highest rate in a year [7] - S&P companies are projected to achieve 6.9% earnings growth in Q3, an increase from the previous estimate of 6.7% [7] Stock Movements - Humana (HUM) closed up more than 10% after reaffirming its earnings guidance for 2025, leading gains in managed health care companies [13] - Fair Isaac Corp (FICO) surged more than 3% after announcing it will sell credit scores directly to mortgage resellers [14] - US-listed Macau-linked casino stocks, including Wynn Resorts Ltd (WYNN) and Las Vegas Sands (LVS), retreated over 7% due to weaker-than-expected national passenger data from China [16] Sector Performance - Chipmakers and AI-infrastructure stocks experienced declines, with KLA Corp (KLAC) down more than 3% and Applied Materials (AMAT) down more than 2% due to a revenue decrease forecast [17] - Weakness in major technology stocks, including Meta Platforms (META) and Tesla (TSLA), contributed to overall market drag, with Palantir Technologies (PLTR) leading losses down more than 7% [18]