Finance

Preliminary September S&P Global Purchasing Managers' Index data indicated that U.S. business activity and corporate inputs are expanding at their fastest clip in years. While demonstrating economic resilience, the unexpectedly strong data sparked fears that inflation could remain sticky. Analysts note the firm economic indicators provide the Federal Reserve with ample justification to consider additional interest rate hikes before the end of the year.

The S&P 500 energy sector emerged as a rare bright spot, bucking the negative trend of the broader market by climbing over 1.5%. Energy equities were lifted as global crude prices rebounded following a multi-day slide, driven by renewed geopolitical tensions and supply uncertainties. The reversal in oil prices added to the broader market's anxieties regarding persistent inflationary pressures.

High-valuation technology shares and chipmakers bore the brunt of the market downturn, pulling the Nasdaq Composite down more than 1% from its recent record highs. The combination of soaring yields and localized volatility broke a strong momentum streak for megacap tech firms. Despite the session's pullback, long-term industry expectations remain anchored by substantial demand for artificial intelligence infrastructure and chip components.