Stocks Wipe Out Rally as Powell Dashes Pivot Hopes: Markets Wrap
- SPY whipsaws in late trading as concerns over banks resurface
- PacWest said to weigh strategic options, including a sale
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Wall Street’s excitement about a potential pause in the Federal Reserve’s aggressive tightening campaign wasn’t enough to keep the stock rally going, with Jerome Powell pushing back on interest-rate cuts for now.
The bond market isn’t buying that. Swap contracts continued to imply a significant easing in monetary policy before the end of 2023. Treasury two-year yields sank as much as 16 basis points to around 3.8%, while the dollar notched a back-to-back slide.