Wall Street Dials Back Fed-Cut Bets on Solid Data: Markets Wrap
- US retail sales rise by more than forecast in broad advance
- Traders pare wagers Fed will cut rates twice more this year
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The world’s biggest bond market got hit as a solid retail sales report had traders trimming their bets on Federal Reserve rate cuts this year.
Treasury yields climbed as the economic figures fanned doubts over how quickly the central bank will ease policy. Swap contracts priced in a total of 42 basis points of rate reductions over the November and December meetings. An advance in equities fizzled out after the S&P 500 hit fresh all-time highs. In late trading, Netflix Inc. rallied as subscriber additions beat estimates.