Manufacturing PMI Drops 5.3% to 48.7, Jobless Claims Rise 241,000

Multiple economic indicators released on May 2nd revealed significant challenges facing the United States economy, including trade tariffs and cost pressures. The ISM Manufacturing PMI dropped to 48.7, marking a five-month low, while the Prices Paid Index surged to 69.8, the highest level since June 2022. The S&P Global Manufacturing PMI slightly decreased to 50.2 but remained within the expansion range. Additionally, Initial Jobless Claims rose to 241,000, and Continuing Claims increased to 1.916 million, both approaching recent highs.

According to a Bitunix analyst, the data indicates a slowdown in manufacturing, rising costs, and a weakening job market. These factors are likely to prompt the market to adopt a cautious approach regarding the timing of rate cuts. The FedWatch tool suggests a 58% chance of a rate cut in June, with only a 5% likelihood in May. Against this backdrop of slowing rate cut expectations, the market may experience increased volatility. The analyst advises paying close attention to the $97,000 resistance level for Bitcoin (BTC), implementing robust risk management strategies, and flexibly adjusting positions to navigate potential market fluctuations.