Wall Street Faces ‘Reality Check’ After Big Rally: Markets Wrap
- Fed says tight credit standards, weak demand persist at banks
- Morgan Stanley’s Wilson says stock gains are bear-market rally
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Stocks struggled to gain much traction as bond yields rose, with traders betting the Federal Reserve will lean against the recent easing in financial conditions by saying it will keep its options open on policy.
After notching its best week of 2023 amid dovish Fed bets, oversold technical levels and positioning, the S&P 500 edged slightly higher on Monday. A reversal of the moves in bonds weighed on sentiment, with 10-year yields up eight basis points to 4.65%. Treasuries slid amid a heavy slate of corporate debt sales and ahead of a series of auctions beginning Tuesday.