US Manufacturing Activity Rebounds, Services Growth Slows: How Do Latest PMIs Influence The Fed's Policy Forecast?
Portfolio Pulse from Piero Cingari
The Purchasing Managers’ Index (PMI) data released by S&P Global shows strong resilience in the US private sector's economic activity in July. The US Manufacturing PMI increased from 46.3 in June to 49 in July, while the US Services PMI fell from 54.4 in June to 52.4 in July. The US dollar reacted positively to the release, with the Invesco DB USD Index Bullish Fund ETF (UUP) up 0.2% for the day, while tech stocks, as tracked by the Invesco QQQ Trust (QQQ), shifted into negative territory. The Federal Reserve is expected to raise interest rates by 25 basis points this week.
July 24, 2023 | 2:15 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Tech stocks, as tracked by the Invesco QQQ Trust (QQQ), shifted into negative territory following the release of the PMI data.
The negative shift in the QQQ is directly linked to the reaction of tech stocks to the PMI data release.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) rose 0.2% following the release of the PMI data.
The rise in the UUP is directly linked to the positive reaction of the US dollar to the PMI data release.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80