Data above 50 points indicates growth and below 50 points indicates contraction.
On the other hand, the estimated PMI reading for the US services sector has registered growth of around 55.5 points in the current month of May, better than expectations, which indicated that the index had risen only about 52.6 points in the same month. period, and the previous reading had seen growth of about 53.6 points in the month of April.
And Standard & Poor’s global data showed U.S. business activity growth hit a 13-month high in May as the U.S. Purchasing Managers’ Index rose to 54.5 in May, against 53.4 in April, to exceed that of analysts. expectations at 50 points. .
The service industry was also the main contributor to this increase, with the fastest growth rate in just over a year thanks to the increase in demand which allowed these companies to raise prices for attempt to counter “historically high” inflationary pressures.
New orders from overseas were also particularly strong, with export orders rising for the first time in a year.
Markets are awaiting any indication that the US Federal Reserve will continue to hike interest rates, in light of US central authorities’ statements on monetary policy tightening, which point to the possibility of further rate hikes of interest.
JPMorgan CEO Jamie Dimon has warned that banks need to plan for the next wave of interest rate hikes, which will be much higher than expected.
“I think everyone should be prepared for higher rates” than current levels, which could be 6 or even 7 percent, Dimon said.
market performance
The Dow Jones index has stabilized since the start of trading, hovering around 33,295.45 points.
The Standard & Poor’s 500 index fell 10.03 points, or 0.25%, to 4,183.10 points.
The Nasdaq index edged down 22.32 points, or 0.18%, to 12,698.62 points.
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