The Dallas Federal Reserve's Manufacturing Index declined in September, falling short of analysts' predictions.

• The Dallas Fed Manufacturing Index dropped from -17.2 in August to -18.1 in September.

• The Production Index rose from -11.2 to +7.9.

• The New Orders Index expanded from -15.8 to -5.2.

On September 25, the Federal Reserve Bank of Dallas published the Dallas Fed Manufacturing Index report. The report revealed a decline in the Dallas Fed Manufacturing Index from -17.2 in August to -18.1 in September, falling short of the analyst consensus of -10.

The Production Index witnessed an improvement from -11.2 in August to +7.9 in September, while the New Orders Index increased from -15.8 to -5.2. Additionally, Capacity Utilization grew from -3.7 to +7.8.

Survey respondents are uncertain about the future, leading to an increase in the Outlook Uncertainty indicator from 12.7 in August to 27.0 in September.

Traders are concerned about the potential for the Federal Reserve to raise rates again in response to inflation, leading to upward movement in Treasury yields. This, in turn, has resulted in the U.S. dollar testing multi-month highs, with the U.S. Dollar Index attempting to establish itself above the 106.00 level.

The rise in Treasury yields and the strength of the dollar have exerted considerable pressure on gold markets, causing the price of gold to retreat towards the $1915 level and approach the nearest significant support level within the $1900 – $1915 range.

Following the release of the Dallas Fed Manufacturing Index report, the SP500 continues to experience downward pressure and settled below the 4320 level as the pullback persists.