Manufacturing PMI Inches Higher, But Still Signals Industry Contraction, Cements Case For Interest Rates On Hold
Portfolio Pulse from Piero Cingari
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) saw a modest uptick to 47.6 in August, still indicating contraction in manufacturing activity. The S&P Global US Manufacturing PMI was revised to 47.9, down 1.1 points from a month earlier. The Bureau of Labor Statistics reported a gain of 187,000 jobs in August, but the unemployment rate increased from 3.5% to 3.8%. This week’s economic data eased pressure on the Federal Reserve to hike interest rates. U.S. stocks opened slightly higher on Friday, with the SPDR S&P 500 ETF Trust (NYSE:SPY) up 0.3%.
September 01, 2023 | 2:06 pm
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The SPDR S&P 500 ETF Trust (NYSE:SPY) opened slightly higher on Friday, up 0.3%, on track for the strongest week of gains since the end of March 2023.
The easing pressure on the Federal Reserve to hike interest rates, along with the modest uptick in the ISM Manufacturing PMI, has likely contributed to the positive sentiment around U.S. stocks, including the SPDR S&P 500 ETF Trust. The ETF's performance is directly tied to the performance of the S&P 500 Index, which is influenced by these macroeconomic indicators.
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