S&P 500, Nasdaq, and Dow slide on weak global PMI services data

Major market averages move lower on Monday’s trading session as Wall Street returns from a long weekend.

The Nasdaq Composite (COMP.IND) is -0.9%, the S&P 500 (SP500) is -0.5% and the Dow (DJI) is -0.5%.

Rates are higher. The 10-year Treasury yield (US10Y) is up 15 basis points to 3.33% and the 2-year yield (US2Y) is up 10 basis points to 3.50%.

Oil prices are lower after a rally on Monday following OPEC’s announcement of a production cut.

“That reverses the increase from September that was one factor helping to lower oil prices, and won’t be welcome news for policymakers as Europe grapples with its own energy issues,” Deutsche Bank’s Jim Reid wrote. “In particular, it’ll be interesting to see how this week’s ECB forecasts are affected by the latest energy shock, and how long they expect it to take before inflation returns back to target.”

On the economic front, global service PMI for August came in softer than expected at 43.7 compared to the anticipated 44.8.

ISM’s August non-manufacturing measure on the other hand came in higher at 56.9 versus the forecasted 55.1.

Among active stocks, CVS agreed to buy Signify Health in an all-cash deal of about $8B.