Today the markets reacted to mixed data that is generating uncertainty 👇
🔻 The negative:
▫️📉 Employment in the non-manufacturing sector fell from 47.2 to 46.4
▫️📉 The ISM Non-Manufacturing PMI dropped from 50.8 to 50.1 (51.1 was expected)
▫️📈 The prices paid sub-index rose to 69.9 → a signal of inflationary pressures
▫️📉 Business activity also fell to 52.6
🔺 In summary: less employment and higher prices = 🧨 fear of stagflation
🟢 The positive:
▫️ The COMPOSITE PMI (manufacturing + services) rose from 52.9 to 55.1 (54.6 was expected)
▫️ The individual SERVICES PMI rose to 55.7, also better than expected
✅ This indicates that, overall, the economy continues to expand (PMI > 50)
⚖️ What weighs more?
➡️ Labor weakness and price pressure are making more noise.
➡️ That's why both the SP500 and #Bitcoin are retreating today.
📍 And for this reason, banks like Goldman Sachs expect the Fed to cut rates up to 3 times this year, to prevent the situation from worsening further.