Major averages on Wall Street stumbled on Tuesday, adding to previous declines triggered by a far-reaching sell-off in the tech sector and rising fears regarding a possible economic deceleration. A 1% fall was recorded by the S&P 500, the Dow Jones took a dive, dropping 404 points, while the Nasdaq receded by 1.6%. New data pointed to the ISM Services PMI being lower than anticipated, and factory orders took a steeper plunge than predicted.  

In January 2024, the demand for US manufactured goods experienced a downturn of 3.6% on a month-to-month basis, following a slight pullback of 0.3% in December. This figure was steeper than the market’s projected decrease of 2.9%. The slump marks the most significant one since April 2020, with noted decreases in orders for transportation equipment (-16.2%), primary metals (-1.9%), fabricated metal products (-0.9%), and machinery (-0.3%). Meanwhile, a positive stride was seen in the sectors of computers and electronic products, with an increase of 1.3%, and electrical equipment, appliances, and components with a boost of 0.9%.  

(Factory Orders， US Census Bureau) 

The Services PMI from ISM declined to 52.6 in February 2024, dropping from the previous four-month peak of 53.4 recorded in January, and falling short of the predicted 53. This indicates a slight deceleration in the growth pace of the services sector due to quicker supplier deliveries (48.9 compared to 52.4) and a decrease in employment (48 versus 50.5). Overall, most providers of services hold a predominantly positive view towards business conditions, despite harboring worries over inflation, employment, and continuing geopolitical confrontations. 

(United States Services PMI， ISM) 

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