On April 23, S&P Global released the Purchasing Managers' Index (PMI) report for the United States for April.

The report showed that the manufacturing PMI fell from 51.9 in March to 49.9 in April, below analysts' expectations of 52. Data below 50 indicates economic contraction. The services PMI also declined from 51.7 to 50.9, below analysts' expected 52. The composite PMI decreased from 52.1 to 50.9, falling short of expectations.

S&P Global commented, "Further slowdown may be ahead in the coming months, as new business inflows in April saw their first decline in six months, and future output expectations for businesses also dropped to a five-month low, exacerbating concerns about the outlook."

The report also highlighted inflation issues. S&P Global pointed out that over the past four months, there has been a rapid rise in prices in the manufacturing sector. Importantly, factory cost pressures intensified in April. The US dollar index tested intraday lows after the weaker-than-expected PMI report was released. Traders believe that the potential economic slowdown will force the Federal Reserve to be more dovish.

Gold rebounded from intraday lows and attempted to stabilize above $2330. The weak dollar and falling bond yields provided support to the gold market.

The S&P 500 index is struggling to stabilize above 5050 points, with traders reacting to the PMI data release. The report may provide additional support to the stock market as the outlook for Federal Reserve policy serves as an important catalyst for stocks.