The US economy continued to demonstrate strength in October, according to the latest flash PMI data.
October’s flash US PMI survey showed a continued rise in business activity, marking a strong start to the fourth quarter. This growth was driven solely by the service sector, as manufacturing output declined for the third month. Employment also saw a slight decrease for the third month in a row, reflecting uncertainties related to the Presidential Election.
However, confidence in the outlook for the upcoming year rebounded after a significant dip in September, with companies predicting more stability and certainty post-election. The survey also reported a slower pace of inflation for input costs and prices charged, with the latter dropping sharply to its lowest level since May 2020, largely due to a significant easing in service sector inflation.
Source: S&P Global
A deepening sell-off in technology and artificial intelligence stocks pressured financial markets, forcing investors to liquidate precious metals holdings to cover losses elsewhere.
Escalating Middle East tensions pushed oil prices higher following a deadly drone strike on Saudi Aramco's Shaybah facility, renewing inflation concerns and expectations for further Federal Reserve tightening.
Rising oil prices renewed inflation concerns as uncertainty surrounding the US-Iran conflict and continued disruptions in the Strait of Hormuz reinforced expectations for further monetary tightening.
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