WS #15219
The September ISM Manufacturing report delivered a jarring mix of softening activity and accelerating inflation. The PMI fell to 54.5 against 55.0 consensus, signaling a deceleration in manufacturing growth, while the Prices Index surged to a record 77.9, indicating persistent and worsening input cost pressures. This data has forced a repricing of interest rate expectations, pushing the US 10-Year Yield to a 24-year high of 5.31% and triggering a selloff in rate-sensitive growth assets like the QQQ.
ISM Inflation Shock and Rate Anxiety
The September ISM Manufacturing report delivered a jarring mix of softening activity and accelerating inflation. The PMI fell to 54.5 against 55.0 consensus, signaling a deceleration in manufacturing growth, while the Prices Index surged to a record 77.9, indicating persistent and worsening input cost pressures. This data has forced a repricing of interest rate expectations, pushing the US 10-Year Yield to a 24-year high of 5.31% and triggering a selloff in rate-sensitive growth assets like the QQQ.