A private survey showed US manufacturing activity in August contracted for the first time in almost a decade, signs that factories are suffering from a global slowdown amid an escalating US-China trade war.
Yields on the US two-year Treasury notes again moved above those of 10-Year bonds in response to the disappointing data. "It's a very quiet market and you have to bear with it for the short term," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
Adding to weak sentiment, President of Philadelphia Fed Patrick Harker said he does not see the case for additional stimulus. Kansas City Federal Reserve Bank President Esther George, a policymaker with a vote on the Fed's policy-setting panel this year, also said she does not yet see a signal of a downturn in the US economy.
At 12:29 pm ET, the S&P 500 was down 4.62 points, or 0.16%, at 2,919.81 and the Nasdaq Composite was down 39.35 points, or 0.49%, at 7,980.86. The Dow Jones Industrial Average was up 44.95 points, or 0.17%, at 26,247.68, lifted by shares of Boeing Co.
Boeing rose 4.1% as Reuters reported that the planemaker is looking to increase production of its grounded 737 MAX jets as early as October, suggesting the aircraft's return to service was on track in early fourth quarter. Six of the 11 major S&P sectors were lower with a 0.55% decline in technology weighing thee most on the benchmark index Bank stocks, which tend to perform better in higher interest rate environment, rose 1%.