Stocks lacked direction and investors reviewed the latest private payrolls and international trade data. Tight labor market conditions are signaling faster rate hikes may be needed to cool inflation.
Major averages struggled after hawkish comments from the Federal Reserve chairman suggested the likelihood of faster rate hikes and higher-than-previously anticipated terminal rates.
Tech rally lost steam after three hours of trading and Treasury yields rebounded. Natural gas prices plunged the most in three months amid forecasts of milder weather for the next two weeks.
Benchmark indexes jumped close to 1% ahead of the release of the Federal Reserve chairman Jerome Powell comments to lawmakers over the next two days and February jobs report on Friday.
Stocks reacted to the latest earnings from retailers and tech companies. Treasury yields traded volatile following comments from Fed policymakers as 10-year yields hover near 30-year bond yields.
Investors are grudgingly accepting the likelihood of interest rates moving higher and staying elevated longer than previously anticipated, a scenario dismissed by economists and traders only six months ago.
Treasury yields extended their recent gains and 6-month and 1-year inched higher above 5% and 10-year notes hovered near 1 3-month high of 4%. Stocks struggled but crude oil attempted a rebound after China's economic activities rebounded.
Stocks extended gains and investors reacted to corporate earnings. Treasury yields inched higher and the yield on 10-year notes traded at a 3-month high. Crude oil edged higher on the hopes of a rebound in demand from refineries in China.
Benchmark indexes pared morning gains and durable goods orders rose excluding volatile transportation orders and pending home sales improved for the second month in a row. Earnings recession has arrived at most companies of all sizes ahead of the looming economic slowdown.
European markets advanced on the back of stronger-than-expected earnings and receding worries of economic recession a week after recording the worst weekly loss in 2023.
Stocks rebounded after Treasury yields edged lower and investors looked ahead after the worst week of 2023. Investors are looking to get better insights on inventories from leading retailers' results this week.
Stubborn inflation is likely to force the Federal Reserve to keep higher rates longer and further weaken the earnings rebound scenario in the second half.
Major averages accelerated declines after a watered down measure of inflation, preferred by the Federal Reserve, accelerated in January. A string of weak corporate results also compounded market worries.
