Stocks Rebound as Treasury Rally Provides Relief from Rate Fears — US Market Wrap
A rebound in Treasuries brought relief to Wall Street, lifting stocks and overshadowing concerns that elevated energy costs could sustain inflation pressures. The recovery in bonds pulled 10-year Treasury yields back from their highest levels since 2002. The S&P 500 reversed an earlier decline triggered by manufacturing data showing a sharp increase in raw-material prices. Oil advanced amid continued geopolitical risks, with the Pentagon reportedly considering deploying another aircraft carrier and 10,000 additional troops to the Middle East. An unwinding of crowded positions helped drive the Treasury rebound, while concerns over France’s fiscal outlook boosted demand for haven assets. Bonds also found support from Federal Reserve Vice Chair Philip Jefferson, who indicated policymakers may need more time to determine whether additional rate increases are necessary. Jefferson’s remarks followed similar comments from New York Fed President John Williams, who said there was no urgency to consider another increase after the Fed raised rates in September.
A rebound in Treasuries brought relief to Wall Street, lifting stocks and overshadowing concerns that elevated energy costs could sustain inflation pressures. The recovery in bonds pulled 10-year Treasury yields back from their highest levels since 2002. The S&P 500 reversed an earlier decline triggered by manufacturing data showing a sharp increase in raw-material prices. Oil advanced amid continued geopolitical risks, with the Pentagon reportedly considering deploying another aircraft carrier and 10,000 additional troops to the Middle East.
An unwinding of crowded positions helped drive the Treasury rebound, while concerns over France’s fiscal outlook boosted demand for haven assets. Bonds also found support from Federal Reserve Vice Chair Philip Jefferson, who indicated policymakers may need more time to determine whether additional rate increases are necessary. Jefferson’s remarks followed similar comments from New York Fed President John Williams, who said there was no urgency to consider another increase after the Fed raised rates in September.