Key Insights
ISM Manufacturing PMI decreased from 46.9 in May to 46 in June.
S&P Global Manufacturing PMI declined from 48.4 to 46.3.
SP500 moved above the 4450 level as traders remained bullish.
On July 3, the Institute for Supply Management released ISM Manufacturing PMI report for June. The report indicated that ISM Manufacturing PMI declined from 46.9 in May to 46 in June, compared to analyst consensus of 47. Numbers below 50 show contraction.
The Institute for Supply Management commented: “The U.S. manufacturing sector shrank again, with the Manufacturing PMI losing ground compared to the previous month, indicating a faster rate of contraction. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens.”
Today, traders also focused on the final reading of S&P Global Manufacturing PMI report for June. The report showed that S&P Global Manufacturing PMI decreased from 48.4 to 46.3, in line with the analyst consensus.
While the manufacturing sector remains under pressure, traders expect that Fed will raise the federal funds rate by 25 bps at the next meeting in July.
SP500 settled back above the 4450 level after the release of the economic report. Traders stay bullish despite the contraction in the manufacturing sector.
U.S. Dollar Index moved below the 102.90 level as traders reacted to ISM Manufacturing PMI. Forex traders bet that the next rate hike in July will be the last one for the Fed in this cycle.
Gold tested the $1930 level as traders focused on the pullback in Treasury yields.
For a look at all of today’s economic events, check out our economic calendar.
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