Marketbites: ISM Data Hits Markets
Updated: Sep 8, 2022
Portfolio Manager Commentary:
Stocks had a rough start to the week with all three indices finishing in the red. The S&P fell -0.41%, the Dow declined -0.55%, and the Nasdaq dropped -0.74%. Treasury yields, on the other hand, continued to see increases with the 10-year treasury jumping 0.162 percentage points to 3.34%.
These moves come after strong data was released by the Institute for Supply Management (ISM) for the month of August. The data shows the purchasing managers index (PMI) came in at 56.9, beating the Dow Jones estimate of 55.5. This means that the U.S. services sector expanded last month at a faster rate than anticipated. These results raised the concern of higher rate hikes from the Fed ahead of their September meeting, causing markets to continue their decline while yields rose.
Investors are looking forward to speeches from Federal Reserve presidents and a fresh rate hike decision from the European Central Bank later this week.
Chart of the Day:
The US Department of Education released data showing that 9-year-old reading and math ability declined significantly since the onset of the pandemic. The test scores indicate a learning deficit that could resonate for years and weigh on economic output.