US manufacturing mired in weakness; AI spending boom helps some factories
1. U.S. manufacturing contracted for sixth month due to tariffs. AI spending supports select industry segments.
1. U.S. manufacturing contracted for sixth month due to tariffs. AI spending supports select industry segments.
The ongoing contraction in manufacturing may signal a slowdown impacting overall economic health, historically linked to weaker S&P 500 performance during similar scenarios.
While the contraction is significant, the supportive AI spending may offset some negative impacts, but the overall context leans bearish for S&P 500.
Immediate effects are likely as market reacts to manufacturing data; longer-term impacts will depend on recovery signs.