All 11 major sectors of the S&P 500 (.SPX) advanced into positive territory, with energy (.SPNY) the biggest gainer. Data showed manufacturing activity rose at the slowest pace in nearly 2-1/2 years in September as new orders shrank, likely as rising interest rates to tame inflation eased demand for goods. read more Sign up now for FREE unlimited access to Reuters.comSign up The Institute for Supply Management said its manufacturing PMI fell to 50.9 this month, missing estimates, but was still above 50, indicating growth. “The flow of economic data actually came in worse than expected. In a very contradictory way that probably represents good news for equity markets,” said Art Hogan, chief market strategist at B. Riley Wealth in Boston. “(While) good economic data, strong readings were a catalyst for selling, this is the first time we’ve seen some negative news being a catalyst.” Further supporting interest-sensitive growth stocks, the yield on the benchmark US 10-year bond fell after British Prime Minister Liz Truss was forced to reverse course on a top-rate tax cut. “The US bond markets (are falling) – that was positive … and that suggests a riskier environment,” Hogan said. All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve’s aggressive monetary policy will push the economy into recession. According to preliminary data, the S&P 500 (.SPX) gained 92.81 points, or 2.54%, to end at 3,678.43, while the Nasdaq Composite (.IXIC) gained 235.42 points, or 2.23 % at 10,811.04. The Dow Jones Industrial Average (.DJI) rose 764.52 points, or 2.63%, to 29,480.41. Citigroup and Credit Suisse became the latest brokerages to cut their year-end 2022 targets for the S&P 500 as US equity markets take heat from the central bank’s aggressive moves to reduce inflation. read more Credit Suisse also set a 2023 year-end price target for the benchmark at 4,050, adding that 2023 will be “a year of weak, non-recessionary growth and falling inflation.” Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Echo Wang in New York. Additional reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru. Editing by Anil D’Silva, Arun Koyyur and Richard Chang Our Standards: The Thomson Reuters Trust Principles.
