The Institute for Supply Management commented: “The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment.”
Today, traders also had a chance to take a look at the final readings of S&P Global Services PMI report. The report indicated that S&P Global Services PMI increased from 54.8 in May to 55.3 in June, compared to analyst consensus of 55.1.
Factory Orders declined by 0.5% month-over-month in May, while analysts expected that they would grow by 0.2%.
U.S. Dollar Index pulled back towards the 105.00 level as traders reacted to the weaker-than-expected ISM Services PMI report. The surprising weakness in the services sector may provide the Fed with an opportunity to start cutting rates sooner than previously expected.