Stocks, Bonds Retreat on Fed’s Tough Rates Message: Markets Wrap
- Powell’s signal of higher-for-longer Fed rates hits sentiment
- August, September tend to be the worst months for the S&P 500
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US stocks and Treasuries fell again Monday as the realization that interest rates are likely to remain elevated for an extended period continued to force a repricing across assets.
The S&P 500 and the Nasdaq 100 dropped a second day, adding to the rout that started Friday when Jerome Powell made it clear the Fed is willing to let the economy suffer as it fights inflation. Treasury yields rose, with the 10-year rate hovering around 3.11%. The two-year yield had climbed to its highest level since 2007 earlier in the day before paring the advance. Oil notched gains on supply risks.