US Private Sector Activity Exceeds Estimates, Fastest Growth In 2 Years – Will The Fed Welcome The Data?
Portfolio Pulse from Piero Cingari
US private sector activity in June exceeded estimates, with the Composite PMI rising to 54.6, the Services PMI to 55.1, and the Manufacturing PMI to 51.7. This indicates the fastest growth in two years. Despite the positive data, major US equity indices traded in the red, except for the Dow Jones. The SPDR S&P 500 ETF (SPY) fell 0.3%, the Invesco QQQ Trust (QQQ) dropped 0.5%, and Nvidia Corp. (NVDA) declined 3.2%. Treasury yields and the dollar rose, while gold, tracked by the SPDR Gold Trust (GLD), fell over 1%.
June 21, 2024 | 2:33 pm
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NEGATIVE IMPACT
The SPDR Gold Trust (GLD) fell over 1% as the dollar strengthened and Treasury yields rose following the PMI data.
GLD's decline is due to the strengthening dollar and rising Treasury yields, which typically negatively impact gold prices.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Nvidia Corp. (NVDA) declined 3.2% after closing 3.5% lower on Thursday, driven by profit-taking in tech stocks.
NVDA's decline is part of a broader trend of profit-taking in tech stocks, despite positive economic indicators.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) dropped 0.5%, driven by a second consecutive day of profit-taking in tech and semiconductor stocks.
The decline in QQQ is attributed to profit-taking in tech and semiconductor stocks, despite positive economic data.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF (SPY) fell 0.3% despite positive PMI data indicating robust economic growth.
Despite the positive economic data, SPY fell due to broader market trends and profit-taking in tech stocks.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80