- US stocks traded mostly lower on Monday following the release of strong economic data.
- The ISM manufacturing index rose to 50.3 in March, representing the first monthly expansion since 2022.
- The data poured cold water on hopes for interest rate cuts in June.
Stocks dropped and bond yields spiked on Monday after solid economic data poured cold water on hopes of a June interest rate cut from the Federal Reserve.
Manufacturing activity as measured by the ISM Index jumped to 50.3 in March, well ahead of expectations. The data represented the first monthly expansion in manufacturing since 2022. Component prices also shot up in the ISM report, raising concerns about stubborn inflation.
If inflation reaccelerates, the Fed would likely err on the side of caution and postpone its planned interest rate cuts. The probability of a Fed interest rate cut in June $4 immediately following the ISM report, according to data from Bloomberg.
Prospects for a June interest rate cut were initially higher on Monday $4 which was in line with expectations.
Here's where US indexes stood at the 4 p.m. closing bell on Monday:
- S&P 500>$4: 5,243.77, down 0.2%
- Dow Jones Industrial Average>$4: 39,566.85, down 0.6% (241 points)
- Nasdaq Composite>$4: 16,396.83, up 0.1%
Here's what else happened today:
- $4 after the company released updated financial data that showed growing losses.
- $4 The surge comes as investors anticipate interest rate cuts from the Fed.
- $4 that track the stock market amid new record highs.
- $4 given its paltry revenue and sizable losses, BI's Emily Steward writes.
- $4 as retail investors start to get more excited about the stock market.
In commodities, bonds, and crypto: