Stocks whipsawed as investors digested a report showing slower growth in the services sector.
 | THU, OCT 03, 2019 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 220.82 | +1.86 | +0.85% | | MSFT | 136.28 | +1.63 | +1.21% | | PFE | 35.46 | +0.76 | +2.19% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | GE | 8.71 | +0.20 | +2.35% | | AMD | 28.68 | +0.37 | +1.31% | | BAC | 27.81 | -0.03 | -0.11% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 28.68 | +0.37 | +1.31% | | AAPL | 220.82 | +1.86 | +0.85% | | MSFT | 136.28 | +1.63 | +1.21% | |
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We can argue about whether the U.S. economy is slouching toward a recession, but we can't argue about whether it's slowing.
The ISM nonmanufacturing index — a key measure of the services sector — came in lower than expected Thursday, sending stocks sharply lower. This followed an earlier release of ISM's manufacturing index, which shows that sector is in contraction.
To be sure, the economy retains its strength, but Credit Suisse has a new word it, writes CNBC's Maggie Fitzgerald. "While investors debate whether we're entering a recession, we believe the backdrop is better described as a 'Semi-Recession,'" said Credit Suisse's chief U.S. equity strategist, Jonathan Golub.
Now comes October, which is historically a volatile month. Whether stocks bounce to the new highs they've almost achieved or fall back amid growing signs of an economic slowdown will likely depend on headlines as U.S. and China trade officials prepare to resume talks Oct. 10-11. 
Stocks plunged Thursday following the release of the ISM report, but then reversed as expectations rose for another rate cut from the Federal Reserve.
While the latest economic data reflects slowing trends, it's possible the trend line doesn't take the economy all the way down to a recession, particularly as the Fed stands pat to react. Traders told CNBC's Bob Pisani that, for now, the market is merely pricing in slower growth.
"The bar is definitely lower for bulls," Alec Young of Global Markets Research at FTSE Russell told Pisani. "All they need to show now is that we are not going into a recession, and the market will stabilize."
They'll have their chance on Friday when the latest unemployment numbers are released. Economists expect 145,000 new jobs for September. Anything lower than that could make for another turbulent day.
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