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Stocks Defy Naysayers as Fed-Hike Premium Shrinks: Markets Wrap

  • Traders dial back tightening bets after weak economic data
  • Equities climb to a seven-week high, led by defensive groups
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The stock rally gained traction, defying calls from skeptics in the aftermath of the Federal Reserve decision, with traders paring bets on rate hikes as the drumbeat of recession grew louder amid an ugly economic print.

Equities climbed to a seven-week high, led by defensive groups, which are often sought after during challenging times. Bond yields sank, and swaps referencing policy meeting dates showed bets the fed funds rate will peak around 3.25% before the end of 2022, less than 100 basis points above its current level. In late trading, Inc. and Apple Inc. jumped, while Intel Corp. slid after reporting results.