Economic activity in the U.S. private services sector maintained its expansion in July, but at a reduced rate compared to previous months, according to surveys released Thursday by S&P Global and the Institute of Supply Management (ISM).

The Services PMI measured by S&P was revised by 0.1 percentage points down to 52.30 points in July, indicating a slowdown from the 54.40 points recorded in June 2023.

Similarly, the ISM Services PMI declined from 53.9 in June to 52.7 in July, falling below the expected 53.

These figures suggest a moderation in the growth pace of the services sector during July.

ISM Services PMI for July: Key Takeaways

Market Reactions: Rising Yields Keep Stocks Under Pressure

Investors haven’t materially shifted their interest rate expectations in response to the data, assigning a 17% probability of a Fed rate hike in September.

Still, rising Treasury yields continue to weigh on the broad risk sentiment on Thursday.

The 10-year Treasury yield gained 9 basis point to 4.17%, the highest since early November 2022. Similarly, the 30-year Treasury yield soared by 10 basis point to 4.28%.

The S&P 500 index opened the session on a weaker note and the SPDR S&P 500 ETF Trust (NYSE:SPY) was down 0.3% at the time of writing.

Read now: Unemployment Claims Tick Higher Ahead Of Friday’s Jobs Report: Treasury Yields Continue To Rise

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