Rich Asplund
October 3, 2025 7 min read
The S&P 500 Index ($SPX) (SPY) on Friday closed up +0.01%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.43%. December E-mini S&P futures (ESZ25) rose +0.01%, and December E-mini Nasdaq futures (NQZ25) fell -0.44%.
Stock indexes settled mixed on Friday, with the S&P 500, Nasdaq 100, and Dow Jones Industrials posting new all-time highs. Stock indexes initially moved higher on Friday as chipmakers and AI-infrastructure stocks gained, driven by optimism that growth in the AI sector will translate into corporate profits. However, higher bond yields on Friday sparked long liquidation in interest rate-sensitive technology stocks. The 10-year T-note yield rose +4 bp to 4.12% on hawkish comments from Chicago Fed President Austan Goolsbee and Dallas Fed President Lorie Logan, who cautioned against additional rate cuts from the Fed.
-
ChatGPT Could Kill the Reddit Star. Does That Mean You Should Sell RDDT Stock Here?
-
The Saturday Spread: These ‘Brown Guac’ Stocks Are Still Good Enough to Extract Profits
-
Make a 4.5% One-Month Yield Shorting Shopify Cash-Secured OTM Puts
-
Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.
Stock indexes also fell back from their best levels on Friday to trade mixed after the Sep ISM services index dropped more than expected to a 4-month low. Also, signs of price pressures in the service sector weighed on bond prices and stocks after the Sep ISM services price paid sub-index unexpectedly increased. Finally, the US government shutdown for a third day on Friday dented market sentiment.
The government shutdown means a delay in the release of government reports, including Friday’s monthly payroll report. A prolonged shutdown could also delay the government’s inflation data, scheduled for release on October 15. The White House has warned that if the government shutdown lingered, it would trigger widespread dismissals of employees in government programs that don’t align with President Trump’s priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during a shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
The US Sep S&P composite PMI was revised upward by +0.3 to 53.9 from the previously reported 53.6.
The US Sep ISM services index fell -2.0 to a 4-month low of 50.0, weaker than expectations of 51.7. The Sep ISM services price paid sub-index unexpectedly rose +0.2 to 69.4, higher than expectations of a decline to 68.0.
