Key points:

• ISM Manufacturing PMI declined from 49.2 to 48.7.
• New Orders Index decreased from 49.1 to 45.4.
• S&P Global Manufacturing PMI increased from 50 to 51.3.

On June 3rd, the Institute for Supply Management (ISM) released its May Manufacturing Purchasing Managers Index (PMI) report. The data shows that the ISM manufacturing PMI decreased from 49.2 in April to 48.7 in May, lower than analyst expectations of 49.6. A value below 50 indicates a contraction in manufacturing activity.

The report shows that economic activity has contracted for 18 out of the past 19 months, highlighting the challenges facing the manufacturing industry. The new order index decreased from 49.1 in April to 45.4 in May, while the production index decreased from 51.3 to 50.2.

ISM commented, "Due to current monetary policy and other conditions, companies are unwilling to invest and demand remains elusive... Suppliers still have production capacity, delivery times have improved, and shortages are not as severe as before."

Today, traders also focused on the final reading of S&P's global manufacturing PMI. The report shows that S&P's global manufacturing PMI rose from 50 in April to 51.3 in May, higher than analyst expectations of 50.9.

The US dollar index fell due to the disappointing ISM manufacturing PMI report. Currently, the US dollar index is attempting to fall below the 104.25 level. The lower yield of treasury bond bonds is bad for the US dollar.

As traders focused on the decline of treasury bond bond yield and the correction of the US dollar, the gold price broke through the level of 2,340 USD.

The S&P 500 index continues to attempt to break through 5,300 points. The outlook for Federal Reserve policy remains an important catalyst for stock indices, so weaker than expected ISM manufacturing PMI data may provide some support for the US stock market.