Stocks, Bonds Stuck in Range as Inflation Persists: Markets Wrap
- Traders, asset managers at odds over chances of 2023 rate cut
- Producer prices and big bank earnings are next key catalysts
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US stocks limped into the final minutes of the trading day after data showed inflation moderated, but was likely not enough to forestall the Federal Reserve from raising interest rates one more time this year.
The S&P 500 ended the day down 0.4% and the Nasdaq 100 slid 0.9% as signs of an early morning rebound disappeared. The tech-heavy gauge has fallen in six of the last seven sessions. Policy-sensitive two-year Treasury yields tumbled as much as 15 basis points before paring the drop to trade at 3.96%. Swaps markets showed the odds are still in favor for a Fed rate hike in May while traders amped up bets the central bank will cut rates later this year.