S&P 500 gains as strong PMI data boosts investor confidence; service sector growth offsets manufacturing decline.
Stronger-Than-Expected PMI Lifts S&P 500 to Session Highs
The S&P 500 rises due to predicted U.S. PMI data.
The stock market saw an uptick in trading on Monday as the S&P 500 reached its levels for the day following news about Purchasing Managers’ Index (PMI) data for March that lifted investor confidence. According to S&P Global’s report, the PMI rose significantly higher than anticipated at 53.5, highlighting a performance. This increase was primarily driven by a boost in service sector activity, which jumped from 51.0 in February to 54.30 in March. However, there was a decline in manufacturing PMI from 52.70 to 49.80, indicating a slowdown in that area.
Encouraged by robust service sector performance data, investor sentiment pushed the S&P 500 index past 5760 points. Additionally, the U.S. Dollar Index saw an uptick as market participants reassessed their forecasts. Meanwhile, bond yields rose, prompting a decline in gold prices, which edged closer to the 3020 mark.
The data indicates strength in the economy; however, dangers persist with signs of decline in the manufacturing sector. Traders are now shifting focus to updates for guidance moving forward.
