Uncertainty in Stocks and Treasuries Amid Federal Reserve's Firm Stance on Interest Rates
Stocks showed uncertainty due to predictions that the Federal Reserve's policy will stay firm even if interest rates cease rising in September to prevent inflation. A weak 30-year bond auction led to falling Treasuries.
San Francisco Fed President Mary Daly told Yahoo! Finance that decisions on raising rates are pending and that there is more work to do, causing uncertainty on Wall Street. Decisions remain inconclusive despite a minimal increase in the core consumer price index.
The S&P 500 ended almost unchanged after an initial 1% rise. Nvidia continued losing, while General Motors and Ford dropped amid labor cost concerns. Walt Disney surged after reporting lower-than-expected capital spending.
30-year Treasury yields rose after a $23 billion auction awarded the highest rate since 2011. Two-year yields stayed mostly steady, reflecting anticipation of Fed actions. Due to technical barriers, the dollar erased losses, and the oil rally paused near the year's highs.1
Range Day for SPY
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