Finance

Flash U.S. purchasing managers' index data showed economic output expanding at its fastest clip since 2021. The S&P Global manufacturing PMI unexpectedly leaped to 57, and the services gauge jumped to 58.7, underscoring resilient domestic demand. While a growing economy is generally positive, the rapid pace of expansion and rising business costs have heightened expectations for further Federal Reserve policy tightening.

Energy prices reversed lower trends to push upward, with Brent crude climbing above $103 per barrel and West Texas Intermediate nearing $93 per barrel. The sudden spike was driven by escalating rhetoric surrounding the conflict involving Iran and the U.S. at the United Nations. The unexpected energy supply pressure has reinjected energy-driven inflation anxieties into the broader financial markets.

Shares of Paychex plummeted roughly 7% to 9% after the payroll processing giant reported soft sales growth and downwardly adjusted its fiscal year 2027 forecasts. Meanwhile, McDonald's led the Dow Jones Industrial Average down with a 5% drop following the unveiling of a multi-billion dollar franchisee modernization plan. In contrast, the consumer staples and energy sectors saw modest gains amid the downturn.