US Services Activity Hits 28-Month Peak, Price Pressures Continue To Ease: Economist Calls It 'A Goldilocks Scenario'
Portfolio Pulse from Piero Cingari
US private sector activity showed stronger-than-expected growth in July, driven by a robust services sector, while manufacturing slipped into contraction. The Composite PMI rose to 55, and the Services PMI hit a 28-month high at 56. However, the Manufacturing PMI fell to 49.7. Inflation pressures eased, but input costs rose. The S&P 500, Nasdaq 100, and small caps declined, with Tesla and Nvidia experiencing significant drops.
July 24, 2024 | 2:55 pm
News sentiment analysis
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NEGATIVE IMPACT
The iShares Russell 2000 ETF (IWM) eased 0.8%, reflecting declines in small caps amid broader market concerns.
The decline in IWM reflects broader market concerns, including political uncertainty and rising input costs, despite positive PMI data for the services sector.
CONFIDENCE 85
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Nvidia Corp. (NVDA) resumed its selloff, down over 3%, reflecting broader market declines and potential sector-specific concerns.
Nvidia's decline is part of a broader market selloff, potentially influenced by sector-specific issues or investor sentiment.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) fell 2.2%, reflecting declines in the tech-heavy Nasdaq 100 amid broader market concerns.
The decline in QQQ reflects broader market concerns, including political uncertainty and rising input costs, despite positive PMI data for the services sector.
CONFIDENCE 90
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) extended its declines, down 1.5% as of 10:15 a.m. in New York, reflecting broader market concerns despite strong services sector growth.
The decline in SPY reflects broader market concerns, including political uncertainty and rising input costs, despite positive PMI data for the services sector.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla Inc. (TSLA) was the worst performer among mega caps, down over 11%, on track for its largest 1-day drop since late January 2024.
Tesla's significant drop is notable amid broader market declines, possibly influenced by sector-specific issues or investor sentiment.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90