Fed Hawks Push Yields Higher and Stocks Give Back Gains
Treasury yields climbed to their highest levels in years after several Federal Reserve officials advocated for further interest rate hikes to combat inflation. While strong earnings from Amazon and Microsoft initially boosted stocks, hawkish central bank commentary and rising yields eventually erased those gains.
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United States Treasury yields climbed to multi-year highs on Friday after Federal Reserve officials signaled that further interest rate hikes are required to lower inflation. The hawkish commentary erased earlier equity gains, leaving the S&P 500 down 0.02% by the afternoon. Investors are now pricing in a 69% probability of a rate increase in September as the central bank maintains its 2% inflation target.
