Wednesday's Markets Update (May 3, 2023)

03 May 2023 by rate3

On Wednesday, Jerome raised the rate by another 0.25 basis points to 5.25 percent, confirming market predicaments. Traders who expected action were disillusioned as they saw both NASDAQ (c:12097, o:12025) and BTC (o:28306, c:28322) in a ranging pattern, while the Services PMI continued to increase.

In April, the Services PMI recorded a reading of 51.9 percent, indicating expansion in the services sector for the fourth consecutive month. This sector has demonstrated growth in 34 out of the past 35 months, except for a contraction in December. The expansion was driven by growth in new and export orders, accompanied by one of the swiftest supplier delivery performances seen since December 2015, thanks to ongoing enhancements in capacity and supply logistics. However, the rate of production increase was the slowest since May 2020, and employment growth also decelerated. At the same time, there was a slight uptick in price pressures.