Stock Bulls Defy Bond Pessimism With Visions of Soft Landing
- S&P 500 rallies; services report comes in better than expected
- We’re back in the range of acceptable, Hogan says of 10-year
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Bond investors suddenly expect the Federal Reserve to deliver more hawkish medicine throughout the year. Stock bulls have a completely different view.
Despite a selloff in Treasuries that’s added more than 20 basis points to 10-year yields in a little over 24 hours, equities have rallied back toward the highest level in two months. Those gains extended after data showed unexpected resiliency in the American services sector along with a sharp drop in prices -- the type of report that could enable Fed officials to ease up on their restrictive policies sooner than currently anticipated.