The Institute for Supply Management’s index of services dropped 2 points to 50, a level that indicates stagnation, the group said Friday
S&P Global Ratings has lowered its probability of a US recession beginning in the next 12 months to below 30% -- a downward revision from a 35% probability estimated earlier in the year during the peak of trade tariff tensions.
Markets eye flat opening as global cues stay mixed; US shutdown worries loom large.
US tech offers growth and resilience, while China’s legal grey areas make them risky
The S&P 500 Index gained 0.8% at 12:56 p.m. in New York, led by the health care and materials sectors
S&P 500 and Nasdaq edging higher while the Dow slipped as a steep drop in Salesforce weighed.
The revenue figure more than doubled from a year earlier, according to people with knowledge of the matter
Seasonality too has added to investor caution, with September historically being the weakest month for equities, taking the S&P 500 down 4.2% on average over last five years, and over 2% on average over the last decade.
Spot gold was steady at $3,476.48 per ounce as of 0947 GMT, after hitting a record high of $3,508.50 earlier in the session. Bullion has gained 32% so far this year
Walmart slid more than 4% despite topping sales expectations in its latest quarter, after the retail giant posted a rare earnings miss—its first since May 2022.
The S&P 500 slipped roughly 0.2 percent, while the Nasdaq Composite fell 0.4 percent as technology names lagged.
US futures already pricing in an 85% chance of a September cut, with much of the ‘good news’ likely baked in, said traders. Of the S&P 500 companies that have already declared results, nearly 82% have beaten analysts’ estimates, showed FactSet data.
The Dow fell 168 points, while the S&P 500 and Nasdaq also slipped. The hotter producer price index reading came just days after a softer consumer inflation print had lifted Wall Street to record highs.
The optimism follows July’s Consumer Price Index reading that shows inflation at 2.7 percent on-year - below forecast - suggesting price pressures may be easing, which has heightened expectations that the Fed will act.
Markets were also buoyed by political developments after US President Donald Trump nominated economist Stephen Miran to the Federal Reserve Board, reinforcing investor bets on rate cuts later this year.
Despite Thursday’s choppy session, major indexes remain on track for weekly gains. The Nasdaq is up nearly 3% week to date, while the S&P 500 has advanced 1.6%. The Dow, though weaker today, is still holding a weekly gain of just under 1%.
Technology stocks led the advance, with the Nasdaq 100 rising 1.07% to 23,263.67. Gains were also seen in transportation stocks, which added 0.5%, while utilities ended the session flat. The broader NYSE index rose 0.31% to 20,521.08, though the Russell 2000, which tracks small-cap stocks, slipped 0.2%.
U.S. stocks closed well off earlier highs after a choppy session on Wednesday (July 30), as Federal Reserve Chair Jerome Powell chilled expectations the central bank might be poised to cut rates at its September meeting. In keeping rates unchanged, as was widely expected, the central bank said "the unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," in a split decision that saw two governors dissent. Stocks were modestly higher before the Fed statement as investors assessed the first reading of second-quarter economic growth, which was stronger than expected, but underlying details indicated an economy that was likely losing strength.
Fed officials meet Tuesday and Wednesday, and are widely expected to keep rates unchanged again
US stocks edged lower on Tuesday, weighed down by weakness in chipmakers and disappointing earnings from names like Lockheed Martin and Philip Morris.
US index futures edged higher with Dow Jones Industrial Average futures rising 0.2 percent, and both S&P 500 and Nasdaq 100 futures gaining 0.1 percent, as investors awaiting tariff announcements by President Trump.
The wielding of unilateral tariffs is upending a system that for decades encouraged lower barriers to commerce under rules enforced by the World Trade Organization.
Investors await progress on trade deals with the return of President Trump's sweeping tariffs just a week away.
US stock futures climbed on Monday, setting the stage for a strong June close as trade optimism and a tech rally lifted sentiment. Canada’s digital tax rollback and fresh stimulus hopes in China added to the tailwinds, while Asian markets ended mixed.
US equities traded mixed by mid-session Friday as investors digested Fed commentary and geopolitical risks. The S&P 500 edged down 0.1 percent, while the Nasdaq fell 0.4 percent on chip stock weakness after reports of possible US tech waiver rollbacks.