On September 3, 2024, the Institute for Supply Management (ISM) released its Manufacturing PMI report for August. The data showed that the ISM Manufacturing PMI rose to 47.2 in August from 46.8 in July, slightly below analysts' expectations of 47.5.

Orders and production indexes both fell

In the report, the new orders index fell from 47.4 in July to 44.6 in August, and the production index fell from 45.9 to 44.8. In response, ISM commented, “Businesses' willingness to invest in capital and inventories continues to be subdued, and demand remains weak due to ongoing federal monetary policy and election uncertainty.”

S&P Global Manufacturing PMI also declined

On the same day, the market also focused on the final reading of the S&P Global Manufacturing PMI. The report showed that the S&P Global Manufacturing PMI fell to 47.9 in August from 49.6 in July, below analysts' expectations of 48.

Market reaction: dollar index flat, U.S. bond yields fell

With the release of the PMI data, the US dollar index was flat and is now trying to fall below the 101.60 mark. Meanwhile, U.S. Treasury yields are lower, which is negative for the dollar.

Gold prices stabilize, stocks retreat

Gold prices stabilized around $2,485 amid a general pullback in commodity markets. While the dynamic impact of PMI data on the gold market is not yet clear, the S&P500 index retreated to 5,580 as investors were concerned about lower-than-expected economic reports and the risk of a slowdown in the U.S. economy triggered market nervousness.