📈 PMI Data Did This to the Market...

And how to move forward from here.

PMI Data

This morning, Manufacturing PMI data came in pretty significantly above expectations.

The hot number signals expansion in manufacturing which hurts our chances of having a rate cut sooner rather than later.

Rate Cut Probabilities

Across the board, we saw probabilities of rate cuts decline.

Using Fedwatch we can see in July for example that our probability of two rate cuts has dropped by over 20%.

This is bearish for the market as investors anticipate rate cuts. Since Powell’s announcement that they were planning on cutting rates, the target date for the cuts has been pushed further and further out, adding uncertainty to the market.

Watch this clip for an in-depth review of the data and what to do going forward: