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US Major indices notch record highs
The S&P 500 surpassed the 5,500 mark while the Nasdaq hit 20,000.
The lack of significant pullbacks strengthens bullish investor confidence but also adds uncertainty about an impending correction.
June's US ISM Services PMI dropped to 48.8 from 52.6 and 53.8 previously, signaling weakening price pressures.
ADP Non-farm employment change fell to 150K in June, down from 157K in May and below the expected 163K.
In data
Weaker-than-anticipated ADP employment data and a poor reading on the non-manufacturing activity purchasing managers index have increased expectations of a slowing U.S. economy. Traders now believe this will prompt the Federal Reserve to cut interest rates sooner.
- The US ISM Services PMI for June slumped to 48.8 vs 52.6 and 53.8 previous. Which further indicates that price pressures are indeed weakening.
- The ADP Non-farm employment change also cooled to 150K vs 157K in May and 163K expected.
In stocks
For the first time in its history, the S&P 500 surpassed the 5,500 marks on Tuesday, continuing its impressive rally in 2024, The Nasdaq 100 hit the 20,000 mark, notching a record high too. Additionally, the absence of any significant pullbacks has bolstered the confidence of bullish investors but also creating a sort of uncertainty when it comes to when a correction is due.
Momentum from Powell’s dovish speech kept the market cheerful and capping the dollar’s strength.
