- U.S. stocks were mostly lower on Monday after the release of positive economic data.
- The ISM Manufacturing Business Index rose to 50.3 in March, marking the first monthly expansion since 2022.
- This statistic poured cold water on hopes for a rate cut in June.
Stocks fell and bond yields rose on Monday after strong economic data put a damper on expectations for a June interest rate cut from the U.S. Federal Reserve.
Manufacturing activity, as measured by the ISM index, rose to 50.3 in March, well above expectations. The statistics marked the first monthly expansion in manufacturing since 2022. The ISM report also shows component prices soaring, raising concerns about stubborn inflation.
If inflation picks up again, the Fed is likely to err on the side of caution and postpone its planned interest rate cuts. Immediately after the ISM report, the probability that the Fed would cut interest rates in June fell below 50%, according to Bloomberg data.
Expectations of a June interest rate cut initially rose on Monday as investors reacted to Friday’s release of PCE inflation data that was in line with expectations.
Here are the U.S. indexes as of Monday’s close at 4 p.m.
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil rose 0.94% to $83.95 a barrel. Brent crude oil, the international standard, rose 0.70% to $87.61 per barrel.
- Gold rose 1.05% to $2,261.90 per ounce.
- The 10-year Treasury yield rose 12 basis points to 4.33%.
- Bitcoin fell 2.70% to $69,390.
