(Bloomberg) — The stock market experienced a decline while bond yields increased in anticipation of Jerome Powell’s upcoming speech. Traders are expecting Powell to hint at a willingness to cut rates, although at a more measured pace.
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This could potentially dampen hopes for a significant rate cut of about 1 percentage point by the end of the year. Treasury yields saw an overall rise, particularly in shorter maturities, which are more reactive to immediate policy changes. Additionally, the dollar strengthened. The S&P 500 dropped after nearing its record high, with Nvidia Corp. leading the decline in major tech stocks.
Investors on Wall Street sifted through various statements from US policymakers, including Federal Reserve Bank of Kansas City President Jeffrey Schmid, who expressed the need for more data before supporting rate cuts. Boston Fed President Susan Collins mentioned that a gradual and methodical approach is likely to be suitable. These sentiments were echoed by Philadelphia Fed President Patrick Harker in an interview on CNBC…
2024-08-22 10:22:42
Originally published on finance.yahoo.com