Stagflationary mix on the ISM knocking risk here
Services employment contracting, new orders and activity barely expanding, prices rising
Stagflation of course is the most toxic combination for risk IF it prevents the Fed being able to cut rates to cushion slowing growth
Given still high real rates, this not really a concern here
Rising risks to growth and employment will be sufficient for the Fed to cut in September
BTFD
ISM Services 50.1, Exp. 51.5
ISM Prices Paid 69.9, Exp. 66.5
ISM Employment 46.4, Last 47.2
ISM New Orders 50.3, Last 51.3