Stocks Join Losses in Bonds as Fed-Cut Wagers Fade: Markets Wrap
- Manufacturing activity expands for first time since 2022
- Traders gear up for raft of Fed speakers for clues on policy
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Wall Street traders sent both stocks and bonds lower after solid US factory data reinforced speculation that the Federal Reserve will be in no rush to cut interest rates.
Treasuries fell across the curve — with 10-year yields climbing over 10 basis points — as manufacturing unexpectedly expanded for the first time since September 2022 — while input costs climbed. Following the report, the amount of Fed easing priced into swap contracts for this year slid to around 65 basis points — less than forecast by policymakers. Equities also lost traction after the S&P 500 notched its fifth-straight month of gains.