ISM Manufacturing PMI Misses Expectations, SP500 Moves Above 4125

Key Insights

• ISM Manufacturing PMI declined from 47.7 to 46.3.
• S&P 500 Global Manufacturing PMI improved from 47.3 to 49.2.
• SP500 moved above the 4125 level. 

ISM Manufacturing PMI Stays Below The 50 Level

On April 3, the Institute for Supply Management released its Manufacturing PMI report, which indicated that ISM Manufacturing PMI declined from 47.7 in February to 46.3 in March, compared to analyst consensus of 47.5.

ISM noted: “Regarding the overall economy, this figure indicates a fourth month of contraction after a 30-month period of expansion. The Manufacturing PMI is at its lowest level since May 2020, when it registered 43.5 percent.”

Today, traders also focused on the final reading of the S&P Global Manufacturing PMI report for March. The report showed that S&P 500 Global Manufacturing PMI improved from 47.3 in February to 49.2 in March, compared to analyst consensus of 49.3.

Both reports missed analyst expectations and showed that the manufacturing sector remained under material pressure.

SP500 Tests New Highs After PMI Data

SP500 made an attempt to settle above the 4125 level after the release of the PMI reports. Traders bet that the Fed will be forced to be less hawkish to provide additional support to the economy. Treasury yields gained downside momentum after the release of the reports, which was bullish for stocks.

U.S. Dollar Index moved towards the 102 level as traders reacted to the pullback in Treasury yields. Traders prepare for a less hawkish Fed.

Gold tested resistance at $1980 as traders focused on weaker dollar and lower Treasury yields. It should be noted that gold continues to face significant resistance below the psychologically important $2000 level.

For a look at all of today’s economic events, check out our economic calendar.