Stock Market Update

[BRIEFING.COM] The stock market turned lower as yield surged in response to the ISM data. 

The ISM Services PMI increased to 54.1% in December (Briefing.com consensus 53.0%) from 52.1% in November. The dividing line between expansion and contraction is 50.0%, so the December reading reflects services sector activity accelerating from November.

The key takeaway from the report is that it was a double-whammy for rate cut expectations in that the expansion in services sector activity accelerated while the prices index picked up noticeably, printing its first reading above 60.0% since January 2024.

The 10-yr yield jumped to 4.68% from 4.63% in response.