PMI Reports Exceed Expectations, SP500 Rebounds From Session Lows
- Manufacturing PMI grew from 47.3 to 49.3.
- Services PMI increased from 50.6 to 53.8.
- Stocks rebounded from session lows as traders reacted to the strong PMI data.
PMI Reports Beat Analyst Estimates
On March 24, S&P 500 Global released the flash readings of PMI reports for March. Manufacturing PMI increased from 47.3 in February to 49.3 in March, compared to analyst consensus of 47. Services PMI improved from 50.6 to 53.8, compared to analyst consensus of 50.5. Numbers above 50 show expansion.
PMI numbers are rising for the third month in a row, and it looks that the bottom was reached in December. However, traders will stay focused on the developments in the banking sector, which may put additional pressure on the economy.
According to recent reports, U.S. Treasury Secretary Janet Yellen was convening a private meeting of financial stability oversight council on Friday morning. It remains to be seen whether traders will see this meeting as a positive catalyst or a sign telling the situation in the banking sector is getting worse.
SP500 Rebounds From Session Lows After PMI Reports
SP500 moved away from session lows as traders reacted to the better-than-expected PMI reports. The reports showed that the U.S. economy remained in a decent shape despite problems in the banking sector, which is bullish for stocks.
U.S. Dollar Index showed little reaction to the report. Currently, the U.S. Dollar Index is trying to settle above the 103 level as some traders are ready to bet on a rebound after the strong pullback.
Gold moved away from the $2000 level as demand for safe-haven assets declined after the release of the encouraging PMI data from the U.S.
For a look at all of today’s economic events, check out our economic calendar.