Stock Buyers’ Fatigue Kicks In as Bond Yields Jump: Markets Wrap
- Treasury yield-curve inversion hits deepest level since 1980s
- US retail investors turn bullish for first time since April
The New York Stock Exchange (NYSE) in New York.
Photographer: John Taggart/BloombergThis article is for subscribers only.
Wall Street couldn’t find many reasons to keep lifting stocks amid higher bond yields, hawkish Fedspeak and a surge in equity bullishness among retail investors that’s often seen as a contrarian indicator.
The S&P 500 wiped out a rally of almost 1%. Options traders continued piling into bets targeting a 6% Federal Reserve peak rate, nearly a percentage point higher than consensus. The two-year yield traded near 4.5%, and earlier pushed above the 10-year rate by the widest margin since the early 1980s — a sign of flagging confidence in the economy’s ability to withstand additional tightening.