The latest ISM Services PMI report indicates a notable slowdown in the US services sector, with key metrics reflecting the weakest business activity since 2020. The index dipped to 50.0, suggesting that growth has stagnated amid rising input costs and persistent inflation pressures. Employment within the service sector contracted for the fourth consecutive month, and new orders have slowed significantly. S&P Global and ISM data reveal a mixed picture, with some surveys suggesting a mild decline while others show activity remaining in the expansion zone. The current landscape raises concerns about potential Fed rate cuts as economic indicators point towards stagflation and weaknesses in employment and orders.