Shares of industrial and transportation companies rallied despite a weak manufacturing report, amid hopes that easing inflation data would take some of the upward pressure off interest rates.
The Institute for Supply Management's index of U.S. manufacturing activity decreased to 50.9 in September from 52.8 in August, the lowest level since May 2020, during the depths of the pandemic.
The report demonstrated that the Fed tightening policy is working, said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group, in a note to clients.
The prices paid section of the report showed "noticeable signs of downward pressure on inflation," Mr. Moya said.
Defense contractor L3Harris Technologies agreed to buy a military-communications business from satellite specialist Viasat for $1.96 billion.
General Motors posted a 24% jump in third-quarter U.S. sales, as supply-chain issues moderated.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-03-22 1634ET
