Imagine what will happen if/when we get a weak non-farm payrolls or CPI report?
Today's weaker US PMI from S&P Global was a taste of what's to come when the data eventually softens, whenever that might be. The 50.9 reading in the services PMI compared to 52.0 expected certainly wasn't a big miss but it cracked the door back open to rate cuts and that was all the market needed.
The S&P 500 is up 62 points to 5072 now and the two days of gains have erased the four days of selling that preceded them.
Looking ahead, this rally will depend on what happens with earnings. Tesla reports after the bell, though I wouldn't classify it as meaningful for the broader market. The bigger signal will come from Visa and whatever is says about the health of the global consumer and spending. Later this week, we will get reports from Meta, Microsoft and Alphabet.
