10x Research: The upcoming ISM data will be crucial in gauging the outlook for the U.S. economy

10x Research noted in its market analysis that while most attention has been focused on US jobs data, the ISM manufacturing index has triggered a 10% market correction in the first week of each of the past three months. However, jobs data has played a key role in shaping market sentiment. Weak jobs data has heightened recession fears and increased expectations of a Fed rate cut, while stronger jobs data has reassured investors that the US economy is more resilient than the ISM manufacturing index suggests. The ISM index may accurately reflect the state of the economy. However, the market has been interpreting the jobs data through lower inflation, which is expected to give the Fed more room for aggressive action. In July, we highlighted that the ISM could signal the end of a Bitcoin cycle, and this month's ISM data, released at 10 a.m. EST on October 1, will be critical in gauging the outlook for the US economy.