ISM Non-Manufacturing PMI Misses Expectations, SP500 Tests Session Lows

Key Insights

• ISM Non-Manufacturing PMI declined from 55.1 to 51.2.
• S&P 500 Global Services PMI grew from 50.6 to 52.6.
• Both reports missed analyst expectations. 

ISM Non-Manufacturing PMI Remains Above The 50 Level

On April 5, Institute for Supply Management released its Non-Manufacturing PMI report for March. The report indicated that ISM Non-Manufacturing PMI declined from 55.1 in February to 51.2 in March, compared to analyst consensus of 54.5. Numbers above 50 show expansion.

ISM commented: “Thirteen industries reported growth in March. The Services PMI, by being above 50 percent for a third month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector.”

Earlier, traders focused on the final reading of the S&P 500 Global Services PMI for March. The report showed that S&P 500 Global Services PMI increased from 50.6 in February to 52.6 in March, compared to analyst consensus of 53.8.

U.S. Dollar Remains Under Pressure

U.S. Dollar Index continues its attempts to settle below the 101.50 level after the release of PMI reports. The reports highlighted expansion of the services sector but missed analyst estimates. Treasury yields have recently tested new lows, which was bearish for the American currency.

SP500 settled below the 4090 level as traders continued to take profits after the recent rally. The weaker-than-expected reports may serve as an additional bearish catalyst for stocks as traders are worried about a potential recession.

Gold has recently tested yearly highs near the $2030 level as traders focused on weaker dollar and lower Treasury yields.

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