Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Shares choppy, U.S. yields fall as investors digest Fed minutes

Economy Aug 18, 2022 05:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an electronic board displaying Shanghai Composite index, Nikkei index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, March 7, 2/2
 
XAU/USD
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-0.21%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CSCO
-0.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.18%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Chibuike Oguh

NEW YORK (Reuters) -Global equity markets were choppy and U.S. Treasury yields fell on Thursday, as uncertainty over the pace of interest rate hikes prevailed among investors after the Federal Reserve's meeting minutes showed officials were determined to curb rising prices.

Markets have been volatile amid concerns about a looming recession, even though Fed officials indicated in the minutes of their July meeting released on Wednesday that they would adopt a less aggressive stance if inflation starts to recede.

"The markets are still trying to figure out the Fed minutes," causing volatility, said Charles Self, chief investment officer at Tandem Wealth Advisors in Appleton, Wisconsin.

"The minutes were uniformly hawkish in our view," Self added. "It's clear that among all the voting members that curing inflation is the No. 1 choice and they're going to do whatever is necessary as far as raising rates to get there. We think they're using the labor market as cover."

MSCI's gauge of stocks in 50 countries across the globe rebounded from earlier losses and was up 0.05%. The pan-European STOXX 600 index closed higher at 0.39%.

U.S. Treasury yields edged lower as investors continued to digest the Fed meeting minutes. A string of Fed officials, including St. Louis Fed President James Bullard and San Francisco Fed President Mary Daly, reiterated on Thursday that the U.S. central bank needs to keep raising interest rates to rein in inflation.

Benchmark 10-year notes were down to 2.8859%, from 2.895% on Wednesday. Two-year notes retreated to 3.2057%, from 3.295%.

The yield curve between two- and 10-year Treasury notes, widely viewed as an indicator of impending recession, remained inverted at minus 38 basis points on Thursday.

"Since the Fed's July 27 meeting, the two-year yields have been up 43 basis points, meaning that the bond market thinks they're going to raise rates higher for a longer period of time, whereas the stock market has been up 5%, meaning the market thinks they'll raise rates relatively quickly and maybe even decrease rates next year," Self added.

"Well, I think the bond market is usually right."

MAJOR INDEXES

On Wall Street, major indexes reversed early session losses and ended higher, driven partly by upbeat sales forecast from networking giant Cisco Systems (NASDAQ:CSCO) that helped to lift the technology sector. Equities in industrials and energy sectors were also among the top gainers.

The Dow Jones Industrial Average rose 0.06% to 33,999.04, the S&P 500 gained 0.23% to 4,283.74 and the Nasdaq Composite added 0.21% to 12,965.34.

Oil prices gained nearly 3% as robust U.S. fuel consumption data and an expected drop in Russian supply later in the year offset concerns that slowing economic growth could undercut demand.

Brent futures rose 3.09% to settle at $96.59 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2.7% to $90.50.

The U.S. dollar index surged to a one-month high after the comments from the Fed officials reaffirming the need for further rate hikes.

The dollar index rose 0.797%, with the euro up 0.01% to $1.0089.

Gold reversed earlier gains and was lower on a firmer dollar, as investors looked for more economic cues that could influence rate hikes. Spot gold dropped 0.2% to $1,758.20 an ounce, while U.S. gold futures fell 0.28% to $1,755.40 an ounce.

Shares choppy, U.S. yields fall as investors digest Fed minutes
 

Related Articles

Today's 3 Most Important Analyst Ratings Initiations
Today's 3 Most Important Analyst Ratings Initiations By Investing.com - Sep 27, 2022

By Davit Kirakosyan Cantor Fitzgerald initiated coverage on Lucid Group Inc (NASDAQ:LCID) with an Overweight rating and a price target of $23.00, noting it believes the company’s...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Henrik Ingwall
Henrik Ingwall Aug 18, 2022 6:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In what way is European stocks falling? France +0,5 Germany +0,8 UK +-0 Sweden +1,1% Started up as well.
jason xx
jason xx Aug 18, 2022 5:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
OMG hello! The last FED meeting was the day before CPI came out.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email