ISM's monthly gauge of the American services sector came in well below expectations, and stocks are falling while bonds rise in the wake of the 10 AM release.
The S&P 500 is now down 0.7%, while 10-year U.S. Treasury futures are up 0.1%, and the yield on the 10-year Treasury note is a basis point lower at 2.61%.
The headline index fell to 54.4 in September from August's 58.6 reading, missing economists' estimates for a smaller drop to 57.0 and indicating a significant slowdown in the pace of growth of the American services sector in September.
The employment sub-index dropped to 52.7 from 57.0. In a week where the release of the monthly jobs report is postponed due to a government shutdown, the number stands out.
The chart below shows the drop in the S&P 500.
Thinkorswim