The S&P Global flash Manufacturing PMI for August came in at 53.2, below both the 53.9 consensus estimate and the prior month's reading of 53.9.

The flash Services PMI outperformed, rising to 56.8 against an expected 54.0 and up from 54.6 in July. The flash Composite PMI climbed to 56.0 from 54.5 previously.

While the manufacturing index fell short of expectations, both the services and composite readings exceeded forecasts. All three indices remained above the 50 threshold that separates expansion from contraction. The flash figures are compiled from roughly 85–90% of total survey responses, making them one of the earliest broad reads on US business conditions each month; final August readings typically follow in early September, around the same time as the ISM's manufacturing and services surveys covering the same month.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the report:

"US business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August. The survey data for the third quarter are currently pointing to annualized growth approaching 3.0%, up solidly from the 1.5% pace seen in the second quarter. Jobs growth has also shown a welcome revival in August, with employers gaining in confidence as concerns fade over the negative economic impacts of tariffs and the conflict in the Middle East. However, the latter in particular remains a key area of concern for businesses, especially via the impact on supply lines and energy prices. Supply delays were again reported in August to one of the greatest extents seen over the past four years, clearly constraining output in many companies. Price pressures, while fading, also remain elevated and prone to renewed upward pressures should energy prices rise again.

"Growth momentum has meanwhile shifted from manufacturing to services between the second and third quarters. As reduced safety stock building and supply delays dampen factory production growth, the service sector is now playing a key role in driving a sustained US expansion, underscoring a dependency on consumer spending and financial services growth."

The tilt toward services carries particular weight for the broader economy because service industries account for the majority of US private-sector output, and the PMI surveys — including their measures of hiring and input costs — are widely followed as an early, forward-looking gauge of growth and inflation trends, including by central banks. Overall, although the manufacturing reading was lower than forecast, the indices remained solidly in positive territory and the accompanying commentary was more constructive in this flash estimate. The full press release is available at S&P Global PMI.

Market reaction

In fixed income, the 10-year Treasury yield rose 1.8 basis points to 4.716%, and the 30-year yield added 2.3 basis points to 5.260%. The 2-year yield was also higher by nearly 3 basis points at 4.214%.

Among US equity indices, the Dow Jones Industrial Average advanced 0.71% and led the major benchmarks, though shares were well off pre-market levels.

The top five gainers in the Dow in early trading:

• Goldman Sachs (GS): +2.36% at $1,025.64
• Cisco (CSCO): +1.95% at $111.73
• Merck (MRK): +1.58% at $151.34
• Caterpillar (CAT): +1.31% at $826.07
• Nike (NKE): +1.19% at $40.69

Goldman Sachs led the Dow higher with a gain of more than 2%, while Cisco and Merck also provided solid support. Caterpillar and Nike rounded out the top five performers, each rising more than 1%.

Bitcoin climbed 6.48%, lifting bitcoin-related stocks. Notable gainers included:

• Robinhood Markets (HOOD): +12.84% at $107.31
• Moderna (MRNA): +11.21% at $148.26
• Coinbase Global (COIN): +9.97% at $189.53
• Strategy (MSTR): +6.90% at $120.14
• Albemarle (ALB): +5.36% at $141.38
• Alcoa (AA): +5.13% at $53.15
• SoFi Technologies (SOFI): +4.72% at $18.76
• Ross Stores (ROST): +4.22% at $238.65
• Nebius (NBIS): +3.42% at $227.63

Crypto-related equities featured prominently among the day's movers as Bitcoin rallied sharply.