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The S&P 500 Index ($SPX) rose 0.09% while the Dow Jones Industrials Index ($DOWI) increased by 0.54%. However, the Nasdaq-100 Index ($IUXX) fell by 0.25% amid escalating US-China trade tensions, with China sanctioning five US units of South Korean shipbuilder Hanwha Ocean Co. This escalation has significant implications, as vessels facilitate over 80% of international trade.
In economic news, the US NFIB small business optimism index declined by 2.0 points to 98.8, falling short of expectations of 100.6. Additionally, concerns about the ongoing US government shutdown led to fears of job loss, with estimates suggesting that up to 640,000 federal workers may be furloughed, potentially raising the unemployment rate to 4.7%.
Looking ahead, major banks including JPMorgan Chase and Goldman Sachs will report Q3 earnings this week, with overall expectations for S&P 500 profits projected to rise by 7.2%, the smallest increase in two years. Market sentiment is currently influenced by a 98% chance of a 25 basis point rate cut at the next Federal Open Market Committee meeting on Oct 28-29.
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