ISM Services PMI Drops To 49.9; U.S. Dollar Tests Session Lows

On June 4, 2025, the Institute for Supply Management released ISM Services PMI report for May. The report indicated that ISM Services PMI decreased from 51.6 in April to 49.9 in May, compared to analyst forecast of 52. Numbers below 50 show contraction.

The New Orders index decreased from 52.3 in April to 46.4 in May, while Employment Index increased from 49.0 to 50.7.

Today, traders also had a chance to take a look at the final reading of S&P Global Services PMI report. The report showed that S&P Global Services PMI increased from 50.8 in April to 53.7 in May, compared to analyst forecast of 52.3. S&P Global Composite PMI improved from 50.6 to 53.0, compared to analyst consensus of 52.1

U.S. Dollar Index tested session lows as traders reacted to the weaker-than-expected ISM Services PMI report. The surprising weakness of the services sector may put additional pressure on the American currency. Currently, U.S. Dollar Index is trying to settle below the 98.80 level.

Gold moved above the $3360 level as traders reacted to the report. Weaker dollar and falling Treasury yields provided support to gold markets.

SP500 remained close to recent highs despite the disappointing report. SP500 is trying to settle above the 5990 level. From the technical point of view, SP500 attempts to get to the test of the nearest resistance level at 6000 – 6010.

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