Wall Street Sees Worst Week of 2023 on Fed Jitters: Markets Wrap
- Tech-heavy Nasdaq 100 underperforms amid higher US yields
- Oil rises as Russia follows through on threat to cut output
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The worst week in 2023 for stocks and bonds saw investors coming to the grips with the idea that the Federal Reserve may indeed have to keep rates higher for longer as it wages a war against inflation.
Wall Street has ramped up bets on the Fed’s peak rate to around 5.2%, from under 5% earlier this month, amid a barrage of hawkish remarks from US officials that followed a hot jobs print. And that’s not all. Traders who had been positioning for the central bank to hike only once more — in March — are suddenly being confronted with wagers on at least three more increases.