US Recession Fears Abating As Services PMI Hits 51.4%

by

As a seasoned researcher with over two decades of market analysis under my belt, I must say that the recent uptick in the US Services Index and PMI readings has brought a breath of fresh air amidst the looming fears of a potential recession. It’s always fascinating to witness the dance between optimism and pessimism on the market floor.

Lately, there’s been a noticeable improvement in certain market indicators, which has sparked optimism about the potential end of the US recession. For instance, the U.S. Services Index, provided by the Institute for Supply Management (ISM), jumped to 51.4% in July. This increase signifies that the sector grew for the 47th time in the last 50 months.

US Recession Fears Abated Per Service ISM And PMI Readings

The value of the ISM went above expectations of 51.0, in addition to positive moves in services employment and inventory. This result from July suggest a moderate rebound in the United States services activity last month. It is supported by a recovery in new orders from 47.3 to 52.5, increased business activity from 49.6 to 54.5 as well as a jump in order backlogs from 44 to 50.6.

In addition, the S&P Global Services Purchasing Managers’ Index (PMI) fell short of July forecasts last week. For the second time in 2023, service sector employment levels rose from 46.1 to 51.1. This upward movement contrasts with the disappointing employment data released on Friday, which has sparked worries about a possible economic recession in the U.S.

Unluckily, the anxiety about recession led to a stock market plunge earlier today. Due to economic concerns, numerous investors have resorted to mass selling, and Chris Shipley, co-chief investment officer at Fort Washington Investment Advisors, has expressed his insights on the current market situation.

As a crypto investor, I understand the present market slump might seem alarming, but it’s essential to remember that this downturn shouldn’t trigger panic. The market, like any other, has inherent vulnerabilities, and one of those is the anticipation of economic expansion and reduced inflation. So, while we may experience temporary dips, it’s crucial to keep a long-term perspective and remain patient.

Crypto Liquidation Hit $1B in 24 Hours

As a researcher observing global financial markets, I noticed that Japan’s Nikkei plummeted by an additional 13% during early trading on Monday, causing ripples of concern throughout the market. Not long after, the cryptocurrency market started to experience significant losses as well, with liquidation levels reaching one of their highest points in a considerable period.

Remarkably, over a billion dollars were withdrawn from the cryptocurrency market within a day. Here’s a simple breakdown: About 900 million dollars of this amount came from long positions being closed out, while approximately 106 million dollars was associated with short positions.

The value of many cryptocurrencies, such as Bitcoin and Ethereum, dropped dramatically. This significant decline has led analysts to believe that this is the first major selling period for Bitcoin since the collapse of FTX, a company headquartered in the Bahamas, which occurred in 2022.

Read More

2024-08-05 20:45