Traders Now See Only 25% Chance of June Fed Hike: Markets Wrap
- Powell steers debate with clear signal on a pause next month
- Debt-limit talks hit roadblock as GOP negotiators walk out
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Traders pared bets on a Federal Reserve rate hike in June to 25% as Jerome Powell signaled a pause. Stocks fell amid a slide in banks and concern US lawmakers are struggling to reach a deal to prevent a default.
The S&P 500 halted a two-day rally, failing to stay above the closely watched level of 4,200. The $3.2 billion SPDR S&P Regional Banking exchange-traded fund slumped almost 2% on a news report that Treasury Secretary Janet Yellen told the chiefs of large lenders that more mergers may be needed.