ISM Manufacturing PMI Rises Above 50; SP500 Remains Under Strong Pressure

On February 3, 2025, the Institute for Supply Management released ISM Manufacturing PMI report for January. The report indicated that ISM Manufacturing PMI increased from 49.3 in December to 50.9 in January, compared to analyst forecast of 49.8. Numbers above 50 show expansion.

The Institute for Supply Management commented: “U.S. manufacturing activity expanded in January after 26 consecutive months of contraction. Demand clearly improved, while output expanded and inputs remained accomodative.”

Today, traders also had a chance to take a look at the S&P Global Manufacturing PMI report for January. The report showed that S&P Global Manufacturing PMI increased from 49.4 in December to 51.2 in January, compared to analyst consensus of 50.1.

U.S. Dollar Index settled near the 109.20 level as traders reacted to the better-than-expected ISM Manufacturing PMI report. From a big picture point of view, forex traders stay focused on tariffs, and it remains to be seen whether economic data will have a material impact on market dynamics in today’s trading session.

Gold is trying to climb above the $2830 level amid rising demand for safe-haven assets.

SP500 declined below the 5930 level after the release of Manufacturing PMI data. Worries about the trade war put significant pressure on the SP500 index today.

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