Stocks Slip as June Rate Pause Optimism Fades: Markets Wrap

  • Investors look for signs of progress in US debt-ceiling talks
  • Higher-than-expected inflation outlook surprises Wall Street
Goldman's Hatzius Sees US Inflation Below 3% Next YearSource: Bloomberg
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Stocks and bonds floundered after Wall Street lost faith that a pause in the Federal Reserve’s interest-rate hiking cycle was a given.

Swaps traders are now pricing in a one-in-10 chance there will be another interest rate hike at the next Fed meeting in June, after odds had been tilted in favor a pause earlier in the week.