US stock indexes plunged above 1%, as the 2-year Treasury yield soared to its highest level since 2007, entering the upper 5% level as Federal Reserve Jerome Powell’s hawkish remarks ramped up bets on a return to aggressive rate hikes at the central bank’s March meeting; along with strong growth in February economic data.
Investors held back ahead of Federal Reserve Chair Jerome Powell’s presentation at 22:00 (GMT) and the February jobs report on Friday. The 10-year and 2-year US Treasury yields turned higher after data showed US Factory Orders (Jan.) fell lower than expected at 1.6% MoM (vs. forecast -1.8%, vs. previous 1.7%).
Wall Street closed flat in early week trade, while US Treasury yields pulled higher with investors braced for this week’s testimony from Federal Reserve Chair Jerome Powell later tonight and the February jobs report on Friday.
Wall Street major indexes closed February in a bearish territory with a total decline of 4.19% for the Dow Jones, 2.61 for the S&P 500, and 1.11% for the Nasdaq; in contrast to the bond market, which was resting comfortably in a yield uptrend.
US & European markets managed to close last week in positive territory, as Treasury yields consolidated and investors digested a number of economic data, which managed to slightly erase global concerns over the rising interest rate trend that is likely to last until the end of the year.
Wall Street ended last week with a rally above 1%, as Nasdaq led the gains by almost 2%. At the same time, S&P500 broke its 3-week consecutive downtrend, and Dow Jones finally returned to a positive weekly position after the end of January.
Global investors digested strong economic data and signals of a measured interest rate approach from the Federal Reserve. US Initial Jobless Claims numbers were released at 190K, lower than the expected 195K (also lower than the previous week at 192K).
Wall Street stocks managed to reverse losses to end positive on Thursday. US Treasury yields tempered gains as investors digested strong economic data and signals of a measured interest rate approach from the Federal Reserve.
New inflation indicators release from China, Germany, and the US hardened expectations that high-interest rates would be in force longer than expected. China’s Manufacturing Purchasing Managers’ Index (PMI) rose to 52.6 (Feb.) from 50.1 (Jan.), marking the fastest growth in more than a decade.
