• The Dow Jones clipped into an all-new record peak, but remains flat overall.
• Equities are tilted upwards, but overall market momentum remains limited.
• US S&P PMI figures came in mixed on Monday, but Fedspeak dominates.

The Dow Jones Industrial Average (DJIA) tested into a fresh record bid on Monday, but middling US data prints and cautious Fedspeak early in the day have kept risk appetite restrained. S&P US Purchasing Managers Index (PMI) figures printed on both sides of median market forecasts, and Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned that despite the Fed’s extra-wide initial rate cut this month, further moves on the Fed’s reference rate could be needed over the next year to head off a potential deterioration of the US labor market.

September’s S&P US Manufacturing PMI declined to 47.0 MoM, falling to its lowest level since July of 2023 as the US manufacturing sector sees a continued gloomy outlook on business activity. On the other hand, the S&P US Services PMI eased to 55.4 in September, down from August’s 55.7 but beating the expected print of 55.2.

Fed policymaker and Chicago Fed President Austan Goolsbee hit markets with cooling comments early Monday, noting that much further movement on rates from the Fed could be necessary. The Fed official highlighted that the Fed may need to shoot much lower on policy rates in order to keep business lending conditions sufficiently liquid enough to keep the US business landscape keel-side down as record tightness in the US labor market drains away.