ISM Manufacturing PMI Drops To 48.0; SP500 Tests Session Lows

Traders also had a chance to take a look at the final reading of S&P Global Manufacturing PMI report. The report showed that S&P Global Manufacturing PMI decreased from 52.9 in June to 49.8 in July, compared to analyst consensus of 49.5.

Michigan Consumer Sentiment increased from 60.7 in June to 61.7 in July, while analysts expected that it would grow to 62.

The University of Michigan commented: “Although recent trends show sentiment moving in a favorable direction, sentiment remains broadly negative.”

Year-ahead inflation expectations declined from 5.0% to 4.5%, while long-run inflation expectations decreased from 4.0% to 3.4%.

U.S. Dollar Index tested session lows as traders reacted to the weaker-than-expected ISM Manufacturing PMI report. Currently, U.S. Dollar Index is trying to settle below the 98.90 level.

Gold settled near session highs after the release of the report. Gold is trying to climb above the $3350 level as traders focus on the major pullback in Treasury yields, which was driven by the weak Non Farm Payrolls report.