The Institute for Supply Management (ISM) reported that the U.S. Services Index rose to 51.4% in July.
Recent increases in a few market indices have instilled renewed optimism in the discussion surrounding the US Recession, especially during the period when the stock market had been declining.
To be more specific, the Institute for Supply Management (ISM) reported that the increase in the United States Services Index for the month of July was 51.4%. This was the 47th time that the sector has expanded after a period of fifty months.
US Recession Fears Abated Per Service ISM And PMI Readings
Additionally, there were positive movements in both employment and inventory of services, which contributed to the ISM value exceeding expectations of 51.0.
According to this result from July, there was a moderate rebound in the activity of the United States services sector during the month of July.
This is supported by the recovery in new orders, which went from 47.3 to 52.5, the growth in business activity, which went from 49.6 to 54.5, and the increase in order backlogs, which went from 44 to 50.6.
Additionally, earlier this week, the S&P Global Services Purchasing Managers’ Index (PMI) fell short of the forecasts for the month of July. This is the second year in a row that service providers have seen their employment levels increase from 46.1 to 51.1 on average.
This overshadows the negative jobs data reported on Friday, which ultimately led to fears about the US Recession. Earlier in the day, the fear of US Recession led to a drop in the stock market.
The outlook for the economy has compelled many investors to engage in uncontrollable selling. In this interview, Chris Shipley, co-chief investment officer at Fort Washington Investment Advisors, discussed his thoughts on the current market perspective.
After emphasizing the fact that the market had “a certain vulnerability” due to expectations of economic growth and lower inflation, Shipley is of the opinion that the present dip should not lead investors to panic.
Crypto Liquidation Hit $1B in 24 Hours
In a similar vein, the Nikkei 225 index of Japan experienced a further decline of 13% during the early trading hours of Monday. The market became increasingly concerned, and within a short period, the cryptocurrency market also began to experience losses.
Liquidity in the cryptocurrency market reached one of its best levels in a very long time. It is noteworthy that more than one billion dollars left the cryptocurrency market in just twenty-four hours.
There are a total of $900 million in long liquidations, whereas there are only $106 million in short liquidations. This is a breakdown of the liquidation.
The market valuation of the majority of cryptocurrencies, including the price of Bitcoin and that of Ethereum, experienced a considerable drop.
Following the collapse of FTX, which had its headquarters in the Bahamas, in 2022, analysts have come to the conclusion that Bitcoin is currently experiencing its worst sell-off since then.
