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UPDATE

The services ISM for March was generally downbeat

Apr 06, 2026 · 10:07 AM ET

MARKETS

The newsletter provided only contains commentary on ISM Services data without specific market performance figures for SPX, Nasdaq, or other indices.

RATES & FED

No specific Treasury movements or Fed expectations detailed in the provided commentary. The focus remained on services sector inflation pressures from the ISM report.

MARKET OUTLOOK

The March services ISM paints a concerning stagflationary picture that should worry markets—growth momentum is clearly decelerating while inflation pressures are resurging dramatically. The prices index surge to 70.7 (the highest since October 2022) signals that the Fed's inflation fight is far from over, which could complicate any dovish pivot expectations. This combination of slowing growth and accelerating price pressures creates a particularly challenging environment for risk assets. The employment component's sharp decline (-6.6 points) alongside the scorching inflation reading epitomizes the stagflation risk that could force the Fed to maintain restrictive policy longer than markets anticipate.

GEOPOLITICAL

No geopolitical developments covered in the provided commentary.

COMPANY NEWS

No individual company news or earnings figures provided in the commentary.

MACRO & FED DATES

No upcoming macro or Fed dates specified in the provided content.

EARNINGS THIS WEEK

No earnings schedule provided in the commentary.

EARNINGS NEXT 2 WEEKS

No earnings schedule provided in the commentary.

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