ISM Manufacturing PMI breaks a 16 month contraction streak – US Market Wrap.

Wall Street traders sold equities and bonds after strong US industrial data bolstered anticipation that the Federal Reserve will not cut interest rates soon.

Treasuries slid throughout the curve, with 10-year rates rising by more than 10 basis points, as manufacturing unexpectedly increased for the first time since September 2022, although input costs rose. Following the report, the amount of Fed easing factored into swap contracts for this year fell to roughly 65 basis points, which was lower than officials had expected. Equities also lost momentum after the S&P 500 posted its fifth consecutive month of gains.

Later this week, a report is likely to reveal that job growth maintained in March as wage growth slowed. Fed Chair Jerome Powell, who is scheduled to speak on Wednesday, indicated Friday that authorities are waiting for more proof that prices are under control.

US 10-year rates remained near their 2024 highs. The S&P 500 dipped below 5,250. Megacaps were mixed, with Apple declining and Microsoft rising. FedEx fell because its contract with the United States Postal Service would expire in late September. The dollar climbed. Oil and gold prices rose as an Israeli attack on Syria threatened to escalate the Middle East crisis.