US S&P Global Services PMI will be released today

A Services PMI above 58.7 could indicate that US economic activity remains stronger than expected. If price pressures are also firm, expectations that the Fed will keep rates higher for longer or tighten again could strengthen, potentially lifting the dollar and US Treasury yields.

A reading materially below 58.7 could reinforce evidence of cooling growth alongside last week’s weak employment report. A more dovish shift in Fed expectations could push the dollar and Treasury yields lower and support Nasdaq and technology stocks, although a particularly sharp deterioration could raise growth concerns and limit that positive effect.