“Investors got another taste of May data, but still seem happy to buy the dip”, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks hold ground despite ISM miss
If markets are beginning to get worried about the impact of Trump’s tariffs, they’re managing to hide it well. US services activity may have slipped into contraction for the first time in almost a year, but once again bad data has been shrugged off. Nobody seemed to care about April data, but May seems to be going the same way too, as investors bet that the tariff pauses lead to a recovery in activity.
Dollar sinks on double miss
Stocks might be ok with bad data but the dollar isn’t. The greenback finds itself at the lows of the day, threatening a break to the late April lows. This is fuelling risk-on moves across FX markets, but next week’s CPI may yet provide some succour to beleaguered dollar bulls.