Both the headline readings for business surveys came in weaker than expected, showing cooling business activity and contracting employment. Tariff-related inflation is elevated, but not expected to be sustained, leading to predictions of rate cuts. The US ISM services index fell to 50.1, lower than predicted, with employment dropping to 46.4. This suggests weak job growth in the coming months. Export orders also fell, indicating further economic cooling. Despite some inflation concerns, including high prices paid in services, the overall outlook supports the case for interest rate cuts to address the weakening economy.

Read more at Investing.com: Business Surveys Add to Concerns About Cooling US Growth