ISM Surprise Lifted US Stocks

February 2, 2026 at 21:00 UTC

4 min read

US stock market rally visualization with ISM Manufacturing data impact on US indexes

Key Points

The stronger-than-expected US ISM Manufacturing print supported US risk appetite and has lifted major US benchmarks across sectors.
The European indexes advanced on supportive macro data and corporate results, while China's modest PMI uptick provided limited regional support.
Sector leadership rotated, with consumer-defensive and industrial ETFs outperforming while energy and utilities ETFs lagged, reflecting mixed sector dynamics.
Corporate headlines, led by Disney's revenue and EPS beats and several completed acquisitions, produced volatile moves in individual stocks.

Global Market Summary

US benchmarks closed higher as the Dow Jones Industrial Average (DJIA) rose 1.04%, the S&P 500 (SPX) gained 0.55% and the Nasdaq (^IXIC) added 0.54% after a stronger-than-expected ISM Manufacturing PMI print. European indexes advanced with the FTSE (UKX) up 1.15%, the DAX (DAX) up 1.05% and the CAC (FRA40) up 0.67%, supported by macro data and corporate results. Asian markets lagged as the Hang Seng (HSI) fell 2.23% and the Nikkei (NKY) dropped 1.25%, despite China's Manufacturing PMI edging up to 50.3.

Top Movers

Sector leaders included consumer-defensive XLP (up 1.28%) and industrials XLI (up 1.12%), while energy XLE (down 1.77%) and utilities XLU (down 1.31%) were the weakest ETFs. Notable individual movers: SNDK surged 14.37%, RGC rose 14.13% and TWST gained 12.56%; on the downside YSS slid 13.78% and VSEC declined 12.60%.

Macro highlights

US ISM Manufacturing PMI for January printed 52.6 versus a prior 47.9 and a consensus around 48.5, a sizable upside that supported US risk appetite and helped lift equities. China's RatingDog Manufacturing PMI ticked to 50.3 from 50.1, indicating modest expansion but offering limited support for regional markets.

News that moved markets

Disney reported fiscal Q1 FY2026 results with revenue of $25.98 billion and adjusted diluted EPS of $1.63, both ahead of consensus, and streaming operating income rose 72% to $450 million. The mix of record parks results, mixed segment profit dynamics and management's reaffirmed targets produced volatile moves in DIS shares as investors balanced near-term cost pressures and CEO succession uncertainty. Several completed transactions were reported, including Essity's completion of its acquisition of Edgewell's feminine care business, Construction Partners' completion of a Texas acquisition, Heritage Financial's completion of its acquisition of Olympic Bancorp, Arclin's completion of its acquisition of The Willamette Valley Company, and Cabot Corporation's completion of the acquisition of Mexico Carbon Manufacturing S.A. de C.V. from Bridgestone. Announced activity included the planned merger between Notre Dame Federal Credit Union and Catholic United Financial and Buyers Edge Platform's announced acquisition of NCB Foodservice.

Upcoming session watchlist

AU RBA Interest Rate Decision — consensus 3.85% vs 3.6% prior, Feb 03, 03:30 AM | Sets policy rates, indicating RBA stance and near-term borrowing costs.
FR Inflation Rate YoY Prel (JAN) — consensus 0.6% vs 0.8% prior, Feb 03, 07:45 AM | Signals near-term inflation trend and price pressures in France.
US JOLTs Job Openings (DEC) — consensus 7.1M vs 7.146M prior, Feb 03, 03:00 PM | Measures labor demand and tightness through posted job openings.

Key Takeaways

US benchmarks closed higher after the ISM Manufacturing upside, with the Dow, S&P 500 (SPX) and Nasdaq all posting gains driven by improved risk appetite.
European indexes advanced on macro data and corporate results, while Asian markets lagged: the Hang Seng and Nikkei fell despite China's manufacturing PMI edging into modest expansion.
Sector performance was mixed: consumer-defensive and industrial ETFs led gains while energy and utilities ETFs were the weakest.
Disney's revenue and EPS beats and several completed acquisitions produced stock-specific volatility, generating large gains for some names and steep declines for others.