Composite PMI Fell To 51.4 As Service Sector Lost Momentum

On February 22, 2024, S&P Global released PMI reports for February. Manufacturing PMI increased from 50.7 in January to 51.5 in February, compared to analyst consensus of 50.5. S&P Global noted that easing pressure on supply chains led to a renewed improvement in vendor performance during February.

Services PMI declined from 52.5 in January to 51.3 in February, compared to analyst consensus of 52. Composite PMI decreased from 52 to 51.4 due to the weaker-than-expected performance of the services sector.

S&P Global commented: “Demand conditions improved further, but at a softer rate as a less marked increase in service sector new business offset an improvement in manufacturing.”

U.S. Dollar Index pulled back towards the 104 level as traders reacted to the report. The weaker-than-expected Services PMI may put some pressure on the American currency.

Gold  remained stuck near the $2025 level. Rising demand for safe-haven assets allowed gold to stay above the $2000 level, but it looks that gold markets need additional catalysts to move higher.

SP500 tested new highs after the release of PMI data. Traders bet that Fed may be less hawkish as the services sector has started to slow down. However, it should be noted that PMI reports will not serve as the key catalyst for SP500 today. Traders will stays focused on the outstanding performance of NVIDIA stock, which is up by 14% after the strong earnings report.

For a look at all of today’s economic events, check out our economic calendar.