US Services Sector Growth Reaches 1.5-Year High

The US services sector showed significant growth in September, with the ISM non-manufacturing PMI rising to 54.9, reflecting strong demand and bolstered by the Federal Reserve's recent interest rate cut. Despite this growth, the services employment index fell to 48.1, indicating labor challenges, particularly in leisure and hospitality. Fed Chairman Jerome Powell reaffirmed the economy's strength, recalibrating market expectations for future rate cuts, though the Fed is not rushing to implement them. Investors are now closely monitoring upcoming employment data, with expectations of steady job growth and a stable unemployment rate around 4.2%. The positive economic indicators have led to increases in major US stock indices, contributing to a resilient market outlook. Overall, the combination of robust services activity and favorable employment data is fueling optimism about the US economic trajectory amid global uncertainties.