ISM Services PMI Drops To 50.1; SP500 Tests Session Lows

On August 5, 2025, the Institute for Supply Management released ISM Services PMI report for July. The report indicated that ISM Services PMI declined from 50.8 in June to 50.1 in July, compared to analyst forecast of 51.5. Numbers above 50 show expansion.

New Orders Index declined from 51.3 in June to 50.3 in July, while Employment Index decreased from 47.2 to 46.4.

The report showed that tariff-related impacts remained a key driver for businesses. Seasonal and weather factors also had a negative impact on business activity. However, ISM Services PMI managed to stay in expansion territory. The economic activity in the services sector grew for the second month in a row.

U.S. Dollar Index continued its attempts to settle above the 99.00 level despite the weaker-than-expected ISM Services PMI report. From a big picture point of view, U.S. Dollar Index is trying to rebound after the sell-off, which was triggered by the weak Non Farm Payrolls report.

Gold settled near the $3370 level after the release of the report. Stronger dollar and rising Treasury yields put some pressure on gold markets today.

SP500 moved lower as traders reacted to ISM Services PMI data. Currently, SP500 is trying to settle below the 6325 level.

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