10x Research: The upcoming ISM data will be crucial in assessing the prospects of the US economy

10x Research pointed out in its market analysis that although most people's attention is focused on U.S. employment data, the ISM Manufacturing Index has triggered a 10% market adjustment in the first week of each month over the past three months. However, employment data played a key role in shaping market sentiment. Weak employment data intensified concerns about economic recession and increased expectations for Federal Reserve rate cuts, while stronger employment data reassured investors that the U.S. economy is more resilient than what the ISM manufacturing index shows.

The ISM index may accurately reflect economic conditions. However, markets have been interpreting employment data through lower inflation, expecting this to give the Federal Reserve more room for stimulus action. In July of this year, we emphasized that ISM might indicate an end to Bitcoin cycles and that ISM data released at 10 am Eastern Time on October 1st will be crucial for assessing US economic prospects.