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12:12 p.m. Oct. 20, 2021 - By Mark Decambre
Dow, S&P 500 end higher but narrowly miss closing highs as Fed's Beige Book shows inflation pressures remainThe S&P 500 index and Dow industrials closed higher on Wednesday, barely missing a finish at record closing highs as investors parsed the Federal Reserve's latest Beige Book showing the U.S. economy is growing at a modest to moderate pace, but remains under pressure from inflation and labor shortages. Strong third quarter corporate earnings are helping investors overcome some doubts about the impact of the coronavirus delta variant, supply-chain disruptions and the Federal Reserve's likely move to start withdrawing some of its easy-money policies. The Dow Jones Industrial Average close 0.4% higher at 35,609, missing its Aug. 16 closing high at 35,625.40. The S&P 500 index closed up 0.4% to end at around 4,536, coming within a hair's breadth of its Sept. 2 closing high at 4,536.95. The Nasdaq Composite Index , however, ended down slightly, less than 0.1% to end at about 15,121, ending its win streak at five straight sessions. Investors were focused on results from electric-vehicle maker Tesla Inc. , which rolled out after Wednesday's close. Meanwhile, the Fed's latest Beige Book survey of economic conditions released Wednesday pointed to a U.S. economy that still is growing at a solid pace, but labor shortages and supply-chain bottlenecks that have been restraining growth and triggering higher inflation.
11:01 a.m. Oct. 11, 2021 - By Tomi Kilgore
Utilities stocks suffer broad weakness as Treasury yields climbThe utility sector suffered a broad selloff Monday, as the to multi-month highs acted as a counterweight. The SPDR Utilities Select Sector ETF dropped 1.4% in afternoon trading with 25 of 28 equities components losing ground. The decline was enough to pace all of the SPDR ETFs tracking the S&P 500's 11 key sectors in declines. Within the XLU, the biggest loser was NextEra Energy Inc.'s stock , which fell 3.0%. Among other more active components, shares of Exelon Corp. shed 1.7%, CenterPoint Energy Inc. slipped less than 0.1% and PPL Corp. gave up 0.7%, while Consolidated Edison Inc. was the best performer with a 1.0% gain. Meanwhile, the yield on the 10-year Treasury note was on track to close at the highest yield since June 3, and Treasury prices fell, as investors bet the Federal Reserve will cut its monthly Treasury purchases. Utilities stocks tend to be stable and have relatively high dividend yields, so they often trade as bond proxies, and fall when Treasury prices fall and Treasury yields rise. The utilities ETF's dividend yield is 3.09%, compared with the implied yield for the S&P 500 of 1.38% and the 10-year Treasury was recently at 1.614%.
6:38 a.m. Sept. 30, 2021 - By Greg Robb
Senior House Republican defends Powell from Warren's criticismRep. Patrick McHenry, the ranking Republican on the House Financial Services Committee, on Thursday defended Fed Chairman Jerome Powell from criticism made earlier in the week by Sen. Elizabeth Warren, the Democrat from Massachusetts. Warren said Powell was a "dangerous man" because he had deregulated the biggest banks over his four-year term and said she would not vote to give him a second term if he were nominated for a second term. McHenry said this criticism was "reckless and unmoored from reality." McHenry said Powell's "decisive action" prevented the worst of the coronavirus pandemic crisis.
6:51 a.m. Sept. 28, 2021 - By Greg Robb
Powell: Some bottlenecks sparking inflation have gotten worseFederal Reserve Chairman Jerome Powell said Tuesday that some of the supply-side bottlenecks behind the surge in inflation have "gotten worse." "Look at the car companies, look at the ships with the anchors down outside of Los Angeles. This is really a mismatch between demand and supply, we need those supply blockages to alleviate, to abate, before inflation can come down," Powell said, during a Senate Banking Committee hearing. The Fed projects that inflation will come down and most of the gains in inflation are coming from a very small category of items, Powell added.
11:00 p.m. Sept. 27, 2021 - By Barbara Kollmeyer
Bond yields keep climbing with 30-year pushing further past 2%The yield on the 30-year Treasury bond pushed further past 2% early Wednesday, last up 6 basis points to 2.05%, a level not seen since June. The 10-year was yielding 1.533%, up 5 basis points, also hovering at levels not seen since June. Yields have been climbing since last week's Federal Reserve decision.
4:47 a.m. Sept. 27, 2021 - By Greg Robb
Fed's Rosengren, under scrutiny for 2020 trading activity, to retire on Sept. 30Boston Fed President Eric Rosengren announced Monday he will retire on Sept 30. In a statement, Rosengren said he moved up his long-planned retirement by nine months because of health concerns. Rosengren would have had to retire next June under Fed rules. Rosengren has been criticized for actively trading in real-estate investment trusts in 2020 while the Fed was taking extraordinary steps to keep financial markets stable during the pandemic. Reformers, like the group Better Markets, had called for Rosengren to resign.
10:55 a.m. Sept. 24, 2021 - By Tomi Kilgore
Utilities sector ETF falls toward record losing streak as Treasury yields jumpThe SPDR Utilities Select Sector ETF fell 0.2% in afternoon trading, putting them on track for a record losing streak and a two-month low, as a recent spike in longer-term Treasury yields made the higher-yielding sector tracker less attractive. The SPDR utilities ETF (XLU) is headed for the lowest close since July 22 and a 12th-straight decline, which would surpass the previous record for consecutive declines of 11, which ended Oct. 7, 2016. The XLU's recent selloff comes the yield on the 10-year Treasury note has run up 12.5 basis points in two days toward a 12-week high, after the Federal Reserve said the . Utilities stocks are viewed by many investors as a bond proxy, given their relative stability and relatively high yield -- the XLU's dividend yield of 3.03% compares with the implied yield for the S&P 500 of 1.36%. As bond yields rise, and bond prices fall, utilities stocks tend to fall. During the XLU's previous record losing streak, the 10-year Treasury yield had reached a 4-month high, on its way toward a more than 2-year high about two months later.
10:44 a.m. Sept. 22, 2021 - By MarketWatch
Fed doubles daily counterparty limit for overnight reverse reposThe New York Federal Reserve Bank on Wednesday said the Federal Open Market Committee directed its Open Market Trading Desk to conduct overnight reverse repurchase agreements, or ON RRP, with a per-counterparty limit of $160 billion a day, effective Thursday. That's double the current limit of $80 billion and was raised to help "ensure that the ON RRP facility continues to support effective policy implementation," the New York Fed said, in a statement.
10:36 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Clarida, echoing Powell, backs start of taper this yearThe number two official at the Federal Reserve on Friday backed the start of a taper of bond purchases later this year, in comments that largely echoed Fed Chairman Jerome Powell's Jackson Hole speech. In an interview with CNBC, Fed Vice Chairman Richard Clarida said he expects the trend of "robust" job gains seen this summer to continue and "if that happens I would also support commencing reduction in the pace of our purchases later this year." The economy has added an average of over 800,000 per month over the last three months. Clarida said it wouldn't take the strong pace of 800,000 jobs per month for the Fed to reach its benchmark for tapering of "substantial" progress in the labor markets. "I don't think it takes 800,000 per month, but robust gains," Clarida said.
10:35 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Mester says exactly what month taper starts is not a big deal Cleveland Fed President Loretta Mester said Friday that the exact month of 2021 that the Fed starts to taper its bond purchases is of little consequence for the economy. "Whether it is September [announcement] to start in November or November to start in December, I don't think that is going to make a material difference to the economy," Mester said, in an interview on Bloomberg Television. Fed officials are "all sort of in the ballpark" of tapering some time this year with the view of completing the process in the middle of next year, Mester said. "The bottom line is that we've met the criteria we put out or we're very close to it," Mester said. In the wake of Fed Chairman Jerome Powell's speech in Jackson Hole, market participants and economists have begun to debate whether the Fed would lay out its strategy in September or November. Mester, who earlier Friday said she would be comfortable with a September announcement, said Fed officials will use its next meeting on Sept. 21-22 to "lay out some of our own thinking about the pace and the timing." Officials will continue to watch the downside risk from the coronavirus delta variant, she added. Mester will be a voting member of the Fed's interest rate committee next year.
4:46 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Harker backs starting taper 'sooner rather than later'Philadelphia Fed President Patrick Harker said he wanted to move toward tapering asset purchases "sooner rather than later." In an interview with CNBC, Harker said that he didn't think the $120 billion per month of asset purchases were "doing a whole lot right now." The economy is being held back by supply issues that lower interest rates can't solve, he said. Harker said he was still supportive of "moving the taper along" despite potential damage to the economy from the coronavirus delta variant. The Philadelphia Fed president said the rapid acceleration in inflation seen this year "may not be so transitory." Contacts in his district have said supply chain disruptions facing the home-building sector "won't be solved anytime soon," he said. Harker won't be a voting member of the Fed's interest-rate committee until 2023.
4:11 a.m. Aug. 27, 2021 - By Greg Robb
Fed's Bostic says job data 'in coming months' will decide when to start taperingThe U.S. economy is "very close" to the substantial progress benchmark needed to start tapering its asset purchases but "a lot depends on what happens in the next couple of months," said Atlanta Fed President Raphael Bostic on Friday. In an interview on CNBC, Bostic said he was focused on conditions in the labor market. If job gains continue at the pace seen earlier in the summer, then that will satisfy the conditions for making substantial progress, he said. This suggests Bostic may want to wait until the November meeting to announce the slowing down of purchases. More hawkish Fed officials are pressing for a September announcement. Once the tapering program started, Bostic said he wanted to reduce the purchases "as quickly as possible." The Fed is buying $120 billion per month of Treasurys and mortgage-backed securities to hold down long-term interest rates. Bostic said he didn't think the tapering would upset financial markets. Fed Chairman Jerome Powell will speak about the economy at 10 a.m. Eastern.
7:06 a.m. Aug. 26, 2021 - By Greg Robb
Dallas Fed's Kaplan, seeing 'resiliency' in face of delta, sticks with call for September taper announcementDallas Fed President Rob Kaplan on Thursday said he will press his colleagues to agree to announce a plan to start "tapering" or slowing down asset purchases in September, and to then launch the program in October or November. Kaplan had made headlines last week when he said the spread of the coronavirus delta variant might cause him to rethink this aggressive timetable. In an interview with CNBC, Kaplan said he has reviewed the latest data and wants to go ahead with his initial plan for the September taper announcement because Americans are adjusting to the delta variant. "What we're seeing is consumers and businesses are just becoming more adaptable," Kaplan said. "We're seeing resiliency." Stocks were lower on Thursday with the Dow Jones Industrial Average [s:DJIA] down almost 100 points in late morning trading.
9:30 a.m. Aug. 11, 2021 - By Greg Robb
Fed's Kaplan says central bank should announce taper plans in SeptemberDallas Fed President Rob Kaplan said Wednesday that he will press his colleagues at the central bank to announce a plan to taper bond purchases at its next meeting in late September. In an interview on CNBC, Kaplan said he wanted the slow down in purchases to start in October and last until June. Kaplan has been pressing his colleagues to start to pull back on its $120 billion in monthly bond and mortgage-related securities since late April. Asked if he had a lot of support from his colleagues for his position, Kaplan said there was a "range of views" but the committee is in a much better place than it was two months. Kaplan said the asset purchases don't help the economy now because the trouble is with the supply of goods and workers. Asset purchases work best to spur demand, he said. Kaplan ducked questions about whether his timetable meant that the Fed will raise interest rates as soon as next year. He said he was "divorcing" his views on tapering from his decisions on when to hike rates.
12:07 p.m. July 29, 2021 - By Mark Decambre
Dow, S&P 500 snap 2-session skid as stock-market investors shake off signal that growth is waning; Robinhood IPO sinksU.S. stock indexes ended solidly higher Thursday, with the Dow and the S&P 500 index finishing higher for the first time in three sessions, as investors weighed a weaker-than-expected updated report on U.S. economic growth in the second quarter and a woeful public market debut for trading platform Robinhood Markets Inc. . The Dow Jones Industrial Average closed up by about 154 points, or 0.4%, at 35,085; the S&P 500 index rose 0.4% to 4,420. Both indexes touched all-time intraday trading highs before paring those gains somewhat. The Commerce Department said U.S. gross domestic product grew at an annualized pace of 6.5% in the second quarter, falling short of the average forecast of 9.1% produced by a survey of economists by The Wall Street Journal. Separately, data from the Labor Department showed first-time applications for unemployment benefits fell 24,000 last week to 400,000. Meanwhile, Robinhood closed down 8.4% in its first day as a publicly traded entity on the Nasdaq Inc. . The trading platform opened at $38 Thursday afternoon. In other corporate news, Trevor Milton, the founder of Nikola Corp. , was indicted Thursday on securities-fraud charges for allegedly lying to investors about its business making commercial trucks powered by alternative fuel. Meanwhile, the 10-year Treasury note edged slightly higher at 1.269%, up 1 basis point, after the Federal Reserve kept rates unchanged at a range between 0% and 0.25% on Wednesday and signaled that it may be leaning toward ending its accommodative measures.
12:08 p.m. July 28, 2021 - By Mark Decambre
Dow, S&P 500 log back-to-back losses as Fed says economy has 'made progress' from COVID but not enoughThe Nasdaq Composite on Wednededay ended solidly higher but the broader market closed weaker as the Federal Reserve signaled that the countdown has begun on scaling back its massive support for the U.S. economy, but a decision still appeared a ways away. The Dow Jones Industrial Average closed down by about 128 points, or 0.4%, at 34,930, the S&P 500 index was virtually flat, but in negative territory, to end at around 4,400. The benchmarks declined for the second straight session. The Nasdaq , meanwhile, closed up 0.7% at roughly 14,762. The Fed kept interest rates at a range between 0% and 0.25%, as expected, and Powell indicated that the central bank was in no immediate rush to scale back on its monthly purchases of $120 billion in Treasurys and mortgage-backed securities, which the Chairman said would continue until "substantial further progress" was made toward the Fed's goals of low unemployment and inflation reaching 2%. The Fed statement said that the rate-setting Federal Open Market Committe "will continue to assess progress in coming meetings." Meanwhile, the small-capitalization Russell 2000 index finished sharply higher, up around 1.6%, at last check. Separately, the 10-year Treasury note was up 2.4 basis points at 1.259%.
10:14 a.m. July 28, 2021 - By William Watts
S&P 500 edges into positive territory after Fed statement, bond yields remain higherStock indexes turned mostly higher, while Treasury yields remained up after the Federal Reserve, as expected, left its monetary policy setting unchanged and said the economy has made progress toward the standards it set for starting to slow down its bond-buying program --- but not enough progress to start tapering yet. The Dow Jones Industrial Average was down around 94 points or 0.3%, while the S&P 500 was up less than 0.1%. The Nasdaq Composite was up 0.5%. The 10-year Treasury note yield remained up 1.3 basis points at 1.249%, little changed from its level ahead of the statement, while the 2-year yield edged up 0.8 basis point to 0.211%. Fed Chairman Jerome Powell will hold his news conference at 2:30 p.m. Eastern.
10:52 a.m. June 25, 2021 - By Tomi Kilgore
Financial stocks lead S&P 500 sectors higher as inflation data boosts Treasury yieldsThe financial sector was the best performing of the S&P 500 11 stock sectors Friday, after upbeat economic data pushed Treasury yields higher. The SPDR Financial Select Sector ETF rallied 1.2% in afternoon trading, with 61 of 65 equity components trading higher, while the S&P 500 edged up 0.3%. Among the ETFs top holdings, shares of Berkshire Hathaway Inc. tacked on 0.8%, J.P. Morgan Chase & Co. gained 1.0%, Bank of America Corp. advanced 2.1%, Wells Fargo & Co. climbed 2.8% and Citigroup Inc. edged up 0.4%. The sector's rally comes as rose 5.4 basis points to 1.541% after data showing the in May marked a third straight big increase. Bank profits can benefit from higher longer-term interest rates, because that can increase the spread between what banks earn on longer-term assets, such as loans, that are funded by shorter-term liabilities.
9:25 a.m. June 9, 2021 - By Mark Decambre
10-year Treasury yields hold near March lows after 'excellent' $38 billion auction, despite looming inflation reportThe 10-year Treasury note yield was holding at around 1.488% Wednesday afternoon after an auction, described as "excellent," saw solid bids and heady demand, shrugging off concerns of rising inflation expectations and an important report on consumer prices due on Thursday. Jim Vogel, analyst at FHN Financial Markets, said "rallies and long Treasury auctions rarely mix well together, but today is an outlier." Bond prices and yields move in opposite directions. The ratio of bids accepted for the auction stood at 2.58 times, compared with a historical average of 2.3 times. The reopening bids allotted at 1.497% vs a "when issued" bid of 1.510% when the auction closed, Vogel noted. The auction comes as U.S. government debt markets await the Thursday May reading of the U.S. consumer-price index, which is expected to be the main event of the week. A hotter-than-expected April CPI reading, which showed prices rose 4.2% year-over-year, briefly rattled markets last month. However, yields have been heading lower, around the lowest levels since March, suggesting that fixed-income investors are buying into the belief shared by a number of members of the Federal Reserve that inflation in the recovery phase of COVID-19 will be temporary. The Fed's rate-setting Federal Open Market Committee convenes a two-day meeting on June 15.
1:18 p.m. June 2, 2021 - By Greg Robb
Fed to sell corporate bond holdings purchased during pandemicIn a milestone for the government's response to the COVID-19 pandemic, the Federal Reserve announced Wednesday it plans to begin selling the portfolio of corporate bonds purchased last year as part of efforts to keep financial markets functioning during the shutdown of the economy. The little-used program, the Secondary Market Corporate Credit Facility, provided an important psychological boost for markets, said Guy LeBas, chief fixed income strategist for Janney, on Twitter. The coming sales are unrelated to monetary policy, a Federal Reserve official said. Portfolio sales will be gradual and orderly, and "will aim to minimize the potential for any adverse impact on market functioning," the Fed said, in a statement. The New York Fed will announce more details before sales begin. As of the end of April, the Fed held $8.6 billion in corporate bond ETFs and $5.2 billion of individual corporate bonds.
12:17 p.m. May 28, 2021 - By Mark Decambre
Dow ends off highs on Friday to wrap trading in May as investors ready for Memorial Day holidayThe Dow and S&P 500 on Friday booked gains for the day, week and month ahead of Memorial Day weekend, with U.S. financial markets in the U.S. closed Monday. Jitters about inflation have been a key feature of trading sentiment in May and investors wrapped up the month with the Federal Reserve's preferred measure of inflation, affirming rising pricing pressures. The personal-consumption expenditure index approached its highest level in nearly 13 years at 3.6%, higher than the 2.9% that economists' surveyed by Dow Jones had forecast. That marks the loftiest level since 2008. On a month-over-month basis, PCE inflation rose 0.6% in April, while the core rate up rose 0.7%. The Dow Jones Industrial Average closed out the session up 0.2% at 34,429, and logged a weekly gain of 0.9% and a monthly advance of 1.9%. The S&P 500 index closed the session up less than 0.1% higher and notched a 1.2% weekly gain and a 0.6% gain in May. The Nasdaq Composite Index , meanwhile, closed less than 0.1% higher on Friday but clinched a weekly gain of 2.1%, while producing a monthly loss of 1.5%, representing its first monthly slide in seven months.
4:36 a.m. May 7, 2021 - By Sunny Oh
10-year Treasury yield slides below 1.50% after weaker-than-expected jobs reportLong-dated U.S. Treasury yields fell sharply on Friday after the Labor Department reported the economy had added 266,000 jobs in April, falling well short of the 1 million gains forecast by MarketWatch-polled economists. The 10-year Treasury note yield was down 6.6 basis points to 1.495%, while the 30-year bond yield tumbled 5.5 basis points to 2.181%. Prior to the report, investors were expecting that a strong jobs report would add to the case for faster pace of liftoff from the Federal Reserve's easy-money policies.
12:20 p.m. May 5, 2021 - By Greg Robb
Fed Vice Chairman Clarida says it is not time yet to talk about taperingFederal Reserve Vice Chairman Richard Clarida on Wednesday said it was not time yet to begin conversations about possibly scaling back the central bank's asset purchases. The Fed is buying $120 billion per month of Treasurys and mortgage-related securities as well as keeping interest rates close to zero in order to stimulate the economy. The Fed has said it wants to see "substantial further progress" on its goals of full employment and stable inflation before tapering. Asked when the Fed should start "talking about talking about" tapering, Clarida replied: "We don't think so right now." Dallas Fed President Robert Kaplan said earlier this week it was time to start the discussion about tapering. Several Fed officials speaking on Wednesday have all disagreed with Kaplan. "We'll get more data -and as we move through the year- we will be able to make a judgement on 'substantial further progress,' but we're not there yet," Clarida said.
5:30 a.m. May 5, 2021 - By Greg Robb
Fed's Evans says chances of persistently higher inflation are 'remote'The chances that the $2.8 trillion stimulus measures passed by Congress since December will overheat the economy and generate higher inflation are remote, said Chicago Fed President Charles Evans on Wednesday. Inflation is likely to pick up in coming months as people resume normal activities and some bottlenecks emerge but simulations performed by economists at the Chicago Fed see inflation topping out at less than a full percentage point and dissipating in two or three years, Evans said in a speech to the Levy Economics Institute of Bard College. "We still have some ways to go before we meet our goals" of full employment and stable 2% average inflation, Evans said. As a result, Fed policy "is likely on hold for some time," he added. Labor market conditions required to move interest rates off zero or to start to taper the $120 billion in monthly asset purchases "will not be met for a while," he said.
4:42 a.m. April 2, 2021 - By Sunny Oh
Treasury yields tick higher after jobs reportU.S. Treasury yields moved higher on Friday after a stronger-than-expected jobs report on Friday. The Labor Department said the U.S. economy had added 916,000 jobs in March, above the forecast of 675,000, pushing the unemployment rate down to 6% from 6.2%. The 10-year Treasury note yield rose 1.6 basis points 1.695%, while the 2-year note rate was up a basis point to 0.170%. The 30-year bond yield gained 0.8 basis point to 2.348%. Bond prices move inversely to yields. A faster pace of job gains will add to the growing impression of a U.S. economy gaining steam, and potentially push investors to bring forward the timing of the Federal Reserve's eventual pullback from its accommodative policies.
10:06 a.m. March 24, 2021 - By Greg Robb
Fed's Williams doesn't expect inflation pressures building over next couple of yearsThe U.S. economy will recover "really nicely" over the next couple of years, but this doesn't mean inflation pressures will build, said New York Fed President John Williams on Wednesday. "I don't see inflationary pressures really building during that time," Williams said during a webinar sponsored by Syracuse University. He noted that inflation rates around the world are very low. In addition, there are still 9 million fewer jobs in the U.S. economy than at the start of the pandemic. If inflation does surprise to the upside, the Fed has the tools to get inflation down near the Fed's 2% annual goal, Williams said.
10:29 a.m. March 23, 2021 - MarketWatch.com
Powell, Yellen face House panel amid concerns over deficit, inflation: live blog Biden’s reported $3 trillion package for infrastructure expected to dominate hearingFed Chairman Jerome Powell and Treasury Secretary Janet Yellen testify together for the first time Tuesday before the House Financial Services panel.
12:30 p.m. March 22, 2021 - By Greg Robb
Powell says U.S. economy 'looks to be strengthening'The U.S. economy has recovered more quickly than generally expected "and looks to be strengthening," said Federal Reserve Chairman Jerome Powell in remarks released on Monday. Consumer spending, housing, business investment and manufacturing productions have all picked up, he noted. This good news is due to the unprecedented support from Congress and the central bank in fighting COVID, Powell said. "But the recovery is far from complete, so, at the Fed, we will continue to provide the economy with the support that it needs for as long as it takes," he said. The path of the economy still depends on the pandemic, Powell added. He made the comments in testimony to be delivered Tuesday to a House Financial Services Committee hearing on the government's response to COVID. It is the panel's custom to release text of testimony on the night before a hearing.
6:19 a.m. March 19, 2021 - By Andrea Riquier
Bank ETFs slide on surprise Fed decisionExchange-traded funds with exposure to the financial sector slipped on Friday after the Federal Reserve said it would not extend a measure of bank regulatory relief. The Invesco KWB Bank ETF was down 2.2% mid-morning, and the First Trust Nasdaq Bank ETF and the Financial Select Sector SPDR Fund each fell 1.7%. Regional-bank funds fared the same: the iShares U.S. Regional Banks ETF gave up 1.7%. The Fed's decision means that starting on April 1, big banks will have to include Treasurys in calculation of the Supplementary Leverage Ratio. An exemption to that rule was put in place in the aftermath of the coronavirus market shocks.
10:33 a.m. March 17, 2021 - By Andrea Riquier
Homebuilder ETFs jump after Fed statementHome-builder exchange-traded funds rallied after the Federal Reserve said it would hold off on raising interest rates at least through the end of 2023. The iShares U.S. Home Construction ETF gained 2.7% in the mid-afternoon, while the SPDR S&P Homebuilders ETF was up 1.2%. The Invesco Dynamic Building & Construction ETF ticked up 0.3%. Home-builder stocks fell in the morning after a disappointing housing-starts report, but rebounded after the central bank released its policy announcement mid-afternoon.
8:35 a.m. March 17, 2021 - MarketWatch.com
Fed faces communication challenge as doubts mount about its easy policy stance: live blog In wake of vaccine-rollout and $1.9 trillion stimulus, markets think first Fed interest-rate hike is no longer years awayThe Federal Reserve will release its latest views on the economy and the ‘dot-plot’ view of interest rate policy at 2pm Eastern. Fed Chairman Jerome Powell will follow with a press conference a half-hour later.
5:35 a.m. March 17, 2021 - By Sunny Oh
Nasdaq stumbles at the open after 10-year Treasury rises before Fed updateU.S. stocks were mostly lower at the start of Wednesday's session as a rise in long-term Treasury yields appeared to weigh on tech shares. Investors will watch the Federal Reserve's policy update in the afternoon where it could bring forward its expectations for a first rate hike through the so-called dot plot. The S&P 500 fell 0.4% to 3,947. The Dow Jones industrial Average rose 27 points, or 0.1%, to 32,853. The Nasdaq Composite slid 1% to 13,338. The 10-year Treasury yield rose 4.1 basis points to 1.664%, briefly hitting its highest level since Jan. 2020. Bond prices move inversely to yields.
6:32 a.m. March 12, 2021 - By Sunny Oh
10-year Treasury yield pushes above 1.60% ahead of next week's Fed meetingU.S. Treasury yields extended their rise on Friday before next week's Federal Reserve meeting where the central bank may opine on the impact of the bond-market selloff on financial conditions. The 10-year Treasury note yield surged 10.6 basis points to 1.633%, its highest level since around Feb. 2020. Bond prices move inversely to yields. Though it wasn't clear what had triggered the sharp surge in yields, investors suggest the fiscal relief bill passed this week may be energizing the bond-market bears. Tom di Galoma, managing director of Treasurys trading at Seaport Global Securities, said if the 10-year closed above 1.64%, the next move for the benchmark maturity would be towards 1.75%.
4:37 a.m. March 5, 2021 - By Sunny Oh
10-year Treasury yield shoots above 1.60% after jobs reportU.S. Treasury yields climbed after the February jobs report showed higher-than-expected job gains, adding to doubts whether the Federal Reserve will able to stay as accommodative for as long as they have signaled. The 10-year Treasury note yield rose 6.2 basis points to 1.612%, a February high, while the 2-year note rate was up 0.6 basis point to 0.151%. The 30-year bond yield rose 3 basis points to 2.33%. The U.S. economy added 379,000 jobs in February, above the forecast of 210,000.
10:26 a.m. March 4, 2021 - By Mark DeCambre
Wall Street's 'fear index' surges to highest level in about 5 weeks as Treasury-yield spike sparks stock-market selloffA closely watched gauge of expected stock-market volatility jumped Thursday to around its highest level since the end of January as a tech-led selloff dragged major benchmarks sharply lower. The CBOE Volatility Index is known by its ticker symbol "VIX", rose 5.07 points to 31.44, a gain of nearly 18%. A close at that level would represent the highest level for the so-called fear index since Jan. 29, according to Dow Jones Market Data. The VIX is an options-based measure of expected volatility over the coming 30 days for the S&P 500 . The VIX, which typically jumps during big stock-market selloffs, also tends to fall back during long, gradual rallies, and has remained stubbornly elevated above its long-term average of 19.50 as stocks pushed back into record territory in recent weeks. But a rise in yields and comments from Federal Reserve Chairman Jerome Powell on Thursday breathed new life into the yield rise and prompted a reassessment of stock values compared against rising fixed-income yields. The Dow Jones Industrial Average was under pressure and the technology-laden Nasdaq Composite Index was on the verge of tumbling into correction, defined as a decline of at least 10% from a recent peak.
10:18 a.m. March 4, 2021 - By Sunny Oh
Goldman Sachs raises 10-year Treasury yield target to 1.90%Goldman Sachs on Thursday raised its Treasury yield target, forecasting the 10-year note rate to hit 1.90% by the end of the year amid a quickening bond-market selloff. The benchmark maturity is up 6.6 basis points to 1.536%. "The already material repricing in global yields will, in our view, extend after some consolidation, driven by a strong acceleration in the global recovery over the coming quarters," said Goldman Sachs strategists led by Praveen Korapaty. The rise in yields over the past few weeks has led banks across Wall Street to repeatedly lift their year-end Treasury yield targets. The combination of fiscal relief and vaccine rollouts have fanned inflation fears, and raised doubts among investors over whether Federal Reserve can stick to its accommodative policy stance for as long as it has signaled.
9:06 a.m. March 4, 2021 - By Sunny Oh
10-year Treasury yield jumps above 1.50% Thursday afternoon after Powell refers to inflation's rise as transitoryU.S. Treasury yields Thursday after Federal Reserve Chairman Jerome Powell said he was monitoring the rise in bond yields and that he would be concerned if financial conditions did tighten. "I would be concerned by disorderly conditions in markets or persistent tightening in financial conditions that threatens the achievement of our goals," Powell said during a webinar hosted by The Wall Street Journal. The 10-year Treasury note yield climbed 7.1 basis points to 1.541%. Bond prices fall as yields rise. Many investors had said that if Powell didn't offer more explicit pushback on higher government bond rates, it could fuel Treasury market weakness. Powell stressed again that the Fed would be "patient" with higher inflation expected this year, saying it was likely to be a "one time" effect and not price gains that continue year-after-year.
5:53 a.m. March 3, 2021 - By Sunny Oh
Gauge of bond-market inflation expectations hits highest since 2008A gauge of future price pressures from holders of Treasury inflation-protected securities are trading at their highest levels in over a decade. The 5-year breakeven rate, which reflects estimates of consumer prices over the next 5 years, stood at 2.50% on Wednesday. The rise in inflation expectations followed climbing bond yields on Wednesday, with the 10-year Treasury note rate up 6.9 basis points to 1.484%. Bond prices move inversely to yields. Investors have been betting that the combination of an accommodative Federal Reserve, trillions in fiscal relief and the reopening of the U.S. economy will lead to a sustained rise in price levels.
7:24 a.m. Feb. 25, 2021 - By Sunny Oh
5-year Treasury note yield hits 0.75% as rate-hike bets accelerateShorter-term Treasury yields were on the move on Thursday as the U.S. government bond market came under assault this week. The 5-year Treasury note yield was up 13 basis points to around 0.76%. Bond prices move in the opposite direction of yields. the 10-year note yield rose 8.4 basis points to 1.473%. Investors are closely eyeing the movements of the 5-year note as it roughly overlaps with the timetable for when the Federal Reserve is expected to carry out its first rate hikes since the pandemic. A higher 5-year note rate would signify bond traders are pricing in more monetary tightening as reflation fears gain ground.
10:43 a.m. Feb. 24, 2021 - MarketWatch.com
Powell says strong growth later this year is his ‘base-case’ forecast: live blog recap Fed chairman also talks about digital dollar, climate change Fed Chairman Jerome Powell said Wednesday his “base case” forecast is strong growth later this year.
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