- The Fed voted to leave its policy benchmark rate unchanged at 4.25%-4.50%
- The ISM Manufacturing Index registered 48.7% in April
- U.S West Texas Intermediate Crude Oil futures prices settled at a four-year low of $57.13 last Monday
Top Three Market Headlines
Fed Holds Steady: The U.S. Federal Reserve voted last week to hold the target range for the federal funds rate at 4.25%-4.50%. This marked the third occurrence this year the Fed left the policy rate unchanged since cutting rates in late 2024. In a statement released after the meeting, the central bank's decision-making committee stated that recent indicators suggest that economic activity has continued to expand at a solid pace and inflation remains somewhat elevated. At the same time, the Fed noted that uncertainty about the economic outlook has increased further in light of the Trump administration's recent trade policy actions.
Business Activity Surveys Mixed: The Institute for Supply Management (ISM) reported that its ISM Manufacturing Index registered 48.7% in April, down from 49.0% in March. The modest decline was caused by a drop in new orders, employment contraction, and production declines. This marked the second consecutive month the index was below the 50% threshold that differentiates expansion of business activity from contraction. Over in the services sector, ISM's Services Index came in at 51.6% for the month. This was the tenth straight month of expanding activity and was an increase from 50.8% in March.
Oil Prices Touch Multiyear Lows: Global oil price benchmarks hit their lowest levels in just over four years early last week after a group of OPEC members decided to raise oil production. Futures contract prices for the international oil price benchmark, Brent Crude, settled last Monday at $60.23 per barrel, while the U.S. benchmark, West Texas Intermediate, settled the same day at $57.13 per barrel―the lowest price for each since February 2021. The decision to raise output by 411,000 barrels per day starting in June was the second time in as many months the OPEC group agreed to accelerate previously planned production hikes that are designed to offset voluntary cuts undertaken since 2022.