US Services Activity Returns To Growth In July, Global Market Selloff Stalls: Are Recession Fears Overdone?
Portfolio Pulse from Piero Cingari
US services sector activity returned to growth in July, easing recession fears. The ISM Services PMI rose to 51.4%, surpassing expectations. Major US equity indices and the US dollar index saw gains, while gold and long-dated Treasuries experienced losses.
August 05, 2024 | 2:15 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) rallied by 500 points to 17,950 levels, reducing the daily drop to negative 2.4% after the ISM Services PMI release.
The ISM Services PMI report led to a rally in the Nasdaq 100, tracked by QQQ, reducing its daily losses.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) gained as recession fears diminished, trimming session losses to 2.3% following the ISM Services PMI release.
The positive ISM Services PMI report eased recession fears, leading to gains in the S&P 500, tracked by SPY.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) saw a rise in the US dollar index following the release of the ISM Services PMI, although it remained down by 0.5% overall.
The ISM Services PMI report temporarily boosted the US dollar index, but the broader dollar gauge tracked by UUP remained in the red.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXY) saw a slight reversal in gains against the US dollar following the ISM Services PMI release.
The ISM Services PMI report led to a slight reversal in the Japanese yen's gains against the US dollar, impacting FXY.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The SPDR Gold Trust (GLD) extended losses to -2% following the ISM Services PMI release.
The ISM Services PMI report led to extended losses in gold, tracked by GLD.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) trimmed gains following the ISM Services PMI release.
The ISM Services PMI report led to a trimming of gains in long-dated Treasuries, impacting TLT.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75