Macro Investors
September 6, 2024 BONUS >> What the latest economic indicators reveal
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⚡ S&P Global US Manufacturing PMI (August): 47.9
A PMI below 50 indicates contraction in the manufacturing sector. In 2015, when the manufacturing PMI fell below 50 for several months, the S&P 500 posted a correction of around 12%.
This signals that equity markets tend to react negatively to persistent weakness in manufacturing.
In bond markets, such periods often saw a flight to quality, with US Treasury yields falling as investors sought safety, similar to what happened in 2011 when PMI dropped during the European debt crisis.
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