US Manufacturing Contracts In September, Raising Questions About Fed's Next Move On Interest Rate Cuts (CORRECTED)
Portfolio Pulse from Michael Cohen
US manufacturing contracted in September, raising questions about the Federal Reserve's next move on interest rates. The S&P 500 index, tracked by SPDR S&P 500 ETF Trust (SPY), fell 1.22%, while the dollar rose, with Invesco DB USD Index Bullish Fund ETF (UUP) up 0.2%.
October 01, 2024 | 2:39 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) rose 0.2% as the dollar strengthened following the release of US manufacturing data.
The contraction in US manufacturing led to a stronger dollar, as investors seek safe-haven assets, benefiting UUP. The ETF's performance is directly tied to the dollar's strength.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 1.22% as US manufacturing data showed contraction, raising concerns about economic growth and potential Fed rate cuts.
The contraction in US manufacturing suggests economic slowdown, which negatively impacts investor sentiment, leading to a decline in SPY. The market's focus on potential Fed rate cuts adds to the uncertainty.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80