US Services Activity Expands For Fifth Month, But Shows Softening Demand
Portfolio Pulse from Piero Cingari
US services activity expanded for the fifth consecutive month, but showed softening demand as the ISM Services PMI declined from 51.9 in April to 50.3 in May, below market expectations of 52.2. The S&P 500 and the dollar dipped in response.
June 05, 2023 | 2:35 pm
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NEGATIVE IMPACT
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), ticked down by 0.15% in response to the softening demand in the services sector.
The decline in the ISM Services PMI indicates a slowdown in the services sector, which could negatively impact the overall market sentiment and lead to a decrease in the S&P 500 index. As SPY tracks the S&P 500, it is likely to be affected by this news.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
The dollar dipped, with Invesco DB USD Index Bullish Fund ETF (NYSE:UUP) down 0.3% in response to the softening demand in the services sector.
The decline in the ISM Services PMI indicates a slowdown in the services sector, which could negatively impact the overall market sentiment and lead to a decrease in the value of the dollar. As UUP tracks the dollar, it is likely to be affected by this news.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80