In October, the ISM Services PMI declined to 51.8.

Over the past 41 months, the sector has experienced growth in 40 of them.

Highlights

• The ISM Services PMI dropped from 53.6 to 51.8.
• The Business Activity Index decreased from 58.8 to 54.1.
• Traders pushed the SP500 to new highs amid speculation that the Fed will initiate rate cuts in the upcoming year.

On November 3, the Institute for Supply Management published the ISM Services PMI report for October. The report revealed a decrease in the Services PMI from 53.6 in September to 51.8 in October, compared to the analysts' expectation of 53.

Furthermore, the Business Activity Index dropped from 58.8 in September to 54.1 in October, while the New Orders Index rose from 51.8 to 55.5.

According to the Institute for Supply Management, "The services sector continues to show a decline. Business Survey Committee respondents' comments reflect mixed sentiment, with some expressing optimism about the current steady business conditions and others expressing concerns about economic factors such as inflation, interest rates, and geopolitical events."

Additionally, traders viewed the final reading of the S&P Global Services PMI report, which indicated an increase in Services PMI from 50.1 in September to 50.6 in October.

Following the release of the ISM Services PMI report, the U.S. Dollar Index settled near the 105.30 level, with the dollar facing pressure as Treasury yields decline significantly.

Meanwhile, gold is trading close to the significant $2000 level, supported by declining yields and a weaker dollar.

The SP500 recently reached session highs around the 4365 level as traders speculated on the possibility of the Fed initiating rate cuts in 2024.