The latest PMI data suggests that the US economy may be losing its initial growth momentum.

Economic Indicators Fall Back: The April report showed that the Standard & Poor's US Composite PMI came in at 50.9 (49.9 for manufacturing and 50.9 for services), which, even though the data was still above the 50 mark, was at its lowest level in four months, and lower than economists' expectations of 52. While the economy is still growing, the rate of growth has slowed.

Business confidence declined: Since reaching a 20-month high at the beginning of the year, overall U.S. business confidence has begun to decline, reaching its lowest level since last November. The report also showed that new orders fell for the first time in six months and companies cut employment for the first time in nearly four years.

Monetary policy and financial conditions: Compared to the market's initial expectation that the Fed would make six to seven interest rate cuts this year, the expectation has now been revised to two. This has led to a sharp rise in United States Treasury yields, tightening financial conditions and having an impact on market sentiment.