Thoughts on the latest ISM Services print and its implications for the Fed

Been digging into the latest ISM Services PMI, and the uptick was definitely something that caught my attention. The employment component, in particular, coming in hotter than expected, seems to suggest a bit more resilience in the labor market than some of the recent JOLTS data might have implied. It's got me wondering how this might shift the Fed's perspective heading into the next couple of meetings.

My initial read is that this could reinforce a more hawkish stance, potentially delaying any rate cut expectations further out into the year, or at least solidifying the 'higher for longer' narrative. If service sector inflation remains sticky due to demand, that's a tough nut to crack. On my watchlist, I'm thinking about how this could impact growth-sensitive sectors and perhaps even some of the more rate-sensitive parts of the market. For instance, tech stocks like $NFLX, currently trading around 73.83, have been on a bit of a run, but sustained higher rates could put some pressure on future earnings valuations. Just trying to connect the dots and see what others are thinking.