The Dow hit its highest levels on record even though the Institute for Supply Management’s services sector survey fell unexpectedly.
The Dow was up 390 points, or 0.8%, and setting fresh intraday records. The S&P 500 was up 0.3%. The Nasdaq Composite was up slightly. All three only need to close higher to set fresh closing records.
The ISM’s services purchasing managers index fell to a 50 reading in September from 52 in August. Economists polled by FactSet anticipated another 52 reading.
This reading sits at a breakeven point; a reading below 50 represents a contraction, while a reading above 50 represents an expansion. The business activity index fell to 49.9 reading, falling into contraction for the first time since May 2020, according to survey chair Steve Miller.
“Commentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges,” Miller said in the news release. “Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff.”
The shutdown has halted government data releases, so private data from firms like the ISM have taken on added importance as Wall Street and central bankers, alike, seek to size up the economy.