• Dow Jones struggles in flat territory as investors roil at upbeat US data.
• Rate-cut-hungry markets balk as US economic figures continue to beat the street.
• US PMIs rose in June as business activity expectations turn upbeat.

The Dow Jones Industrial Average (DJIA) is stubbornly flat on Friday, treading water after US equity markets were disappointed by a better-than-expected print in June’s US Purchasing Managers Index (PMI) figures. Markets hoping for a not-too-steep decline in US economic data to push the Federal Reserve (Fed) towards rate cuts were disappointed by upbeat activity survey results, leaning into the “bad news is good news” narrative driving financial markets singularly focused on achieving cheaper lending and financing rates from the Fed.

US PMIs broadly beat Wall Street forecasts in June, with the S&P Global Manufacturing PMI rising to 51.7 from the previous month’s 51.3, snubbing a forecast decline to 51.0. The Services component also increased, climbing to 55.1, it’s highest print since May 2022. The previous month had printed at 54.8, and markets had forecast a decline to 53.7.

On the downside, US Existing Home Sales eased back to 4.11 million units MoM in May, a -0.7% slip from the previous 4.14 million, but still a smaller decline than the forecast 4.10 million. Despite Friday’s mildly higher print in PMIs, markets continue to pin hopes on a September rate cut from the Fed. According to the CME’s FedWatch Tool, rate traders are still pricing in around 65% odds of at least a quarter-point rate trim at the Federal Open Market Committee’s (FOMC) September 18 rate decision