2023-05-23 14:55:47
Wall Street
The manufacturing sector in the United States contracted during May for the first time in 4 months. The initial reading of the manufacturing PMI index recorded about 48.5 points during this May, worse than expectations that indicated a growth of the index by about 50.0 points, and the previous reading was recorded by about 50.2 points during last April.
Data above 50 points indicates growth, and below 50 points indicates contraction.
On the other hand, the estimated reading of the PMI index for the services sector in the United States recorded a growth of about 55.5 points during the current May, better than expectations, which indicated that the index grew by about 52.6 points only during the same period, and the previous reading had recorded a growth of about 53.6 points during last April. .
And Standard & Poor’s Global data showed growth in US business activity to its highest level in 13 months in May, as the purchasing managers’ index in the United States rose to 54.5 in May, up from 53.4 in April, to come higher than analysts’ expectations at 50 points. .
The service industry was also the main supporter of this rise, with the growth rate being the fastest in just over a year thanks to rising demand that allowed these companies to raise prices in an attempt to counter the “historically high” inflationary pressures.
New orders from abroad were also particularly strong, with export orders growing for the first time in a year.
The markets are waiting for any indication as to whether the US Federal Reserve will continue to raise interest rates, in light of statements from US central officials regarding tightening monetary policy, which indicates the possibility of continuing to raise interest rates.
JPMorgan CEO Jamie Dimon warned that banks need to plan for the next wave of interest rate hikes, which will be much higher than most expect.
“I think everyone should be prepared for higher rates” than current levels, which could be 6 or even 7 percent, Dimon said.
markets performance
The Dow Jones index has been stable since the beginning of trading, moving around 33,295.45 a point.
The Standard & Poor’s 500 index also fell 10.03 points or 0.25 percent to 4,183.10 a point.
The Nasdaq fell slightly 22.32 point or 0.18 percent to 12,698.62 a point.
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