(Bloomberg) — Stocks got hit by a tech selloff, while bonds rallied as remarks from Federal Reserve Governor Christopher Waller bolstered speculation officials will deploy a super-sized rate cut in September.
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Treasuries rallied across the curve, with two-year yields down eight basis points to 3.66%. While policy easing tends to bode well for equities, that isn’t usually the case when the Fed has to be aggressive — as it might signal a rush to prevent a recession. To make matters worse, the S&P 500 is under heavy pressure from its most-influential group — technology.
Waller said it’s important for the US central bank to begin cutting interest rates this month amid rising risks of further weakening in the labor market. He’s also “open-minded” about the potential for a bigger rate cut and would advocate for one if appropriate. His remarks were made after…
2024-09-06 10:48:52
Original from finance.yahoo.com