Investors are expected to track overseas leads when trading resumes today after yesterday’s Labor Day break.
The PSEi closed on Wednesday up 102.80 points or 1.64 percent at 6,354.99.
Stockbrokerage firm DA Market Securities said he expects the market to be cautious “ahead of key US data.”
Overnight Thursday, a key data monitoring the US manufacturing sector’s health is set to be released — the ISM Manufacturing PMI. (ISM PMI stands for Institute for Supply Management’s Purchasing Managers’ Index.)
Wall Street survived an early bloodbath Wednesday (Thursday in Manila) after it was reported that the US economy contracted by 0.3 percent in the first quarter of the year, compared with a 0.2 percent expansion in the same period last year.
A separate report on monthly consumer spending, which accounts for more than two-thirds of economic activity, showed a jump of 0.7 percent in March, topping expectations for a 0.5 percent rise.
GDP and consumer spending data appeared to be affected by the trade war, as businesses and consumers pulled forward spending to avoid tariffs, Reuters reported.
Wednesday’s reports join a series of data releases this month that have pointed to an increasingly uncertain outlook for the US economy, as the fallout from the Trump administration’s steep tariffs and unpredictable trade policy takes effect.
“Sell the rally’ chatter is rising, though not yet at extreme levels. While top strategists warn against chasing gains, past patterns suggest heavy caution can signal market bottoms,” the report said.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the softer US economic data could support future Fed rate cuts.
“Fed Fund futures priced in four Fed rate cuts for the rest of 2025, at -1.00. Fed rate cuts could be matched locally,” he said.
