US Services Activity Expands Most in Six Months; Prices Hit 4-Year High

This points to a services economy that is not just holding up but accelerating, which challenges the narrative of a sharp slowdown. The jump in prices to a four-year high is the key tension: stronger demand is colliding with cost pressures, and that mix is what the Fed will be scrutinizing. For markets, the significance is that it reduces the odds of imminent, aggressive rate cuts, as the data supports a more patient approach. The open question is whether this price strength is a temporary blip or the start of a renewed inflation trend, which would force a rethink of policy expectations.