U.S. PMI Hits Five-Year High as Bitcoin Falls Below $84,000
The composite index recorded its strongest expansion since July 2021, while markets priced a higher chance of a Federal Reserve rate hike.
U.S. business activity accelerated to its fastest pace in more than five years in September, lifting rate-hike expectations and pressuring stocks and Bitcoin (BTC).
The composite purchasing managers index recorded its strongest expansion since July 2021.
Markets priced a roughly 70% chance of a 25-basis-point Federal Reserve rate increase at the October meeting, compared with about 30% for no change. The shift pushed Treasury yields higher, with the 10-year yield rising about 14 basis points above 5%.
U.S. equities ended lower. The Dow Jones Industrial Average fell 0.68%, the S&P 500 dropped 0.75% and the Nasdaq Composite declined 1.1%.
Bitcoin briefly slipped below $84,000 after the U.S. market opened and later traded near $84,400, down about 2.2% over 24 hours. Strategy, BitMine, BNC, Coinbase and Circle also fell, while Securitize gained 10.46%.
The data renewed concern that strong growth and rising cost pressures could keep interest rates higher for longer.
