Composite PMI Misses Expectations; SP500 Tests Session Highs

On January 6, 2025, S&P Global released final readings of PMI reports for December.

The reports indicated that Services PMI increased from 56.1 in November to 56.8 in December, compared to analyst forecast of 58.5.

The report showed that there were further signs of cost pressures moderating in December. Business confidence increased, and companies indicated that client demand had improved.

S&P Global commented: “The strong service sector PMI reading for December sets the U.S. economy up for a good start to 2025 but, with growth as strong as this, it’s understandable that policymakers are taking a more cautious approach to lowering interest rates.”

Composite PMI increased from 54.9 in November to 55.4 in December, compared to analyst forecast of 56.6. The weaker-than-expected Services PMI report led to a lower-than-expected reading of the Composite PMI report. Nevertheless, the report showed that U.S. economy remained in great shape.

U.S. Dollar Index settled near the 108.20 level as traders reacted to PMI reports. It remains to be seen whether reports will have a major impact on forex markets today as traders are focused on Trump’s comments regarding his tariff policy.

Gold  pulled back towards the $2630 level despite weak dollar. Rising Treasury yields put pressure on gold markets.

SP500 tested new highs as traders focused on PMI data. Currently, SP500 is trying to settle above the 6015 level. From a big picture point of view, SP500 continues to rebound after the recent pullback.

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