Imagine what will happen if/when we get a low non-farm payrolls report or a low CPI?
The weaker US PMI released today by S&P Global is just a taste of what will happen when the data finally eases, whenever that happens. The Services PMI reading of 50.9 versus the expected 52.0 was certainly not a big miss, but it opened the door to rate cuts and that was all the market needed. need.
The S&P 500 is up 62 points to 5,072 now and the two days of gains have erased the four days of selling that preceded them.
Looking ahead, this rally will depend on earnings developments. Tesla reports after the bell, although I wouldn’t call it significant for the broader market. The most important signal will come from Visa and everything that is said about the health of the global consumer and their spending. Later this week we will receive reports from Meta, Microsoft and Alphabet.
This article was written by Adam Button at www.forexlive.com.
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