Source: Wall Street News Author: He Hao
The US ISM service industry fell short of expectations in March and was lower than last month. The price input index that the market is paying close attention to hit a four-year low, driving the intraday rise in US stocks and US bonds.
On Wednesday, data released by ISM showed that the US ISM service sector PMI growth slowed for the second month in a row in March, falling short of expectations. Among them, the much-publicized service price payment sub-index fell to its lowest level in four years. Furthermore, supplier deliveries and new orders also declined.
The US ISM service index for March was 51.4, expected to be 52.8, and 52.6 before February. 50 is a watershed moment between prosperity and withering. The US ISM service sector PMI has remained above the 50 mark for more than a year, but the March figure fell short of the expectations of the vast majority of economists surveyed by the media.
In terms of important sub-indices:
The price index plummeted 5.2 points in a single month, from 58.6 to the latest 53.4. This is the second consecutive month of sharp decline, indicating that the rate of cost increase is slowing down sharply. Looking back at the data released last month, the price index plummeted 5.4 points in February compared to January, the biggest drop since July 2022.
The US ISM service industry price input index hit a four-year low. US stocks and gold bonds rose, and Powell was about to speak later.
The S&P 500 index rose more than 0.2%, the Dow rose about 120 points, or more than 0.3%, and the NASDAQ rose about 0.1%.
US two-year Treasury yields dived nearly 4 basis points in the short term, approaching 4.69%.
Spot gold rose by about 10 US dollars in the short term to above 2,285 US dollars. The overall increase during the day turned. At the beginning of the Asia-Pacific market, it reached a record high of 2288.40 US dollars. COMEX gold futures also rose to $2308.80 in early Asia Pacific trading, a record high for flagship contracts.
Data from earlier in the same day showed:
The final value of the US Markit service sector PMI in March remained unchanged at the initial value of 51.7, in line with analysts' expectations, and hit a new low since December 2023. It was the 14th month of continuous expansion. The final value for February was 52.3, and 52.6 for the same period in 2023. Among them, the final value of the employment sub-index fell to 51.1 month-on-month, setting a new low of the final value since November 2023; the price collection sub-index rose month-on-month, hitting a new high of the final value since July 2023.
The final value of Markit's comprehensive PMI for the US in March fell to 52.1 month-on-month, a new low since January 2024. It expanded for 14 consecutive months. The final value in February was 52.5, and 52.3 for the same period in 2023. Among them, the final value of the employment sub-index fell to 51.2 month-on-month, a new low since November 2023; the final value of the price input sub-index rose month-on-month, hitting a new high since September 2023.
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