The services PMI improved to 57.0 in November from 55.0 in October, compared to analyst forecasts of 55.2. The services sector is still in excellent shape.
The composite PMI rose to 55.3 from 54.1, while analysts expected it to grow to 54.3. The strong performance of the services sector boosted the Composite PMI.
S&P Global noted: “The prospect of lower interest rates and a more pro-business approach from the new administration has fueled optimism, which in turn helped boost production and order inflows in November.”
The US Dollar Index rose above the 107.60 level as traders reacted to the better-than-expected Composite PMI report. The US economy remains strong, which is bullish for the US currency.
Gold continued its attempts to settle above the $2700 level. Gold demand is driven by rising geopolitical tensions, and it remains to be seen whether PMI reports will have a material impact on gold market dynamics.
The SP500 rose above the 5970 level as traders focused on strong PMI reports. From an overall perspective, stock traders remain bullish.