Any concerns that the ISM services PMI could move closer to (or within) contraction were promptly swept aside with Monday's report, which saw the headline PMI expand at its fastest pace in four months. S&P Global’s services PMI for the US was also above expectations. Most importantly, ISM employment, new orders and prices paid expanded - and these were the internal indices of concern in from the prior report. Specifically, prices paid (a proxy for inflation) expanded at its fastest pace in 11 months and the m/m read increased at its highest rate since February 2021. Fed fund futures still imply a cut in May with a ... (full story)