Jul 07, 2021
The equity markets got off to a shaky start this week with the S&P 500 falling more than one-half of a percent at the low of the day. The move was sparked by a growing concern the best of the post-pandemic recovery has already been priced into the market. With the second-quarter earnings season fast approaching the risk for the market is that results will not be as good as expected.
Data from The Institute of Supply Management helped to sour the sentiment on Tuesday. The ISM Services index fell to a reading of 60.1 compared to the expectation of 63.3 and gives evidence of slowing activity within the economy. While positive, the fact economic activity is slowing could have a serious impact on earnings in the second half of the year