On July 1st, the Institute for Supply Management (ISM) released its manufacturing PMI report for June.

The report shows that the ISM Manufacturing PMI index decreased from 48.7 in May to 48.5 in June, lower than analysts' expected 49.1. The index below 50 indicates that the manufacturing industry is in a state of contraction.

The ISM manufacturing employment index decreased from 51.1 in May to 49.3 in June, lower than analyst expectations of 50.0, while the new orders index rose from 45.4 to 49.3.

ISM commented, "Due to current monetary policy and other conditions, companies are unwilling to invest in capital and inventory, and demand remains sluggish."

In addition, investors today also paid attention to the final reading of S&P's global manufacturing PMI report. The report shows that S&P's global manufacturing PMI rose from 51.3 in May to 51.6 in June, slightly lower than analyst expectations of 51.7.

Affected by this, the US dollar index attempted to fall below the 105.60 level as traders responded to weaker than expected reports. Although the yield of US treasury bond bonds rose, it did not provide enough support for the US dollar.

Although the yield of US treasury bond bonds rose, gold still rose as traders focused on the fall of the US dollar. At present, the trading price of spot gold is close to $2,330.

The S&P 500 index hit an intraday low as traders focused on current trends in US manufacturing. Some traders may use this disappointing report as an excuse to take profits as they approach historical highs.