Inflation came in slightly above expectations and bond investors are demanding more yield to make the bet on the longer term. The trigger was fresh inflation data that showed prices are growing at a level higher than expected. The consumer price index climbed 2.4% year over year in September versus expectations of 2.3%.
U.S. stock futures were pointing to a negative open on Thursday. Investors will be watching for the fallout from Hurricane Milton and are awaiting the release of U.S. inflation data. Federal Reserve officials debated whether to lower interest rates by a quarter or half of a percentage point last month, according to the minutes from the Federal Open Market Committee’s Sept. 17-18 meeting, which were published on Wednesday afternoon.
The average contract rate on a 30-year fixed-rate mortgage rose 22 basis points in the week ended Oct. 4, the Mortgage Bankers Association said on Wednesday. The last time it rose that much was in July 2023, when the Fed was still increasing interest rates in its battle to bring down inflation. Mortgage rates had peaked in October 2023, near 8%, and by the time of the Fed's September policy-setting meeting had fallen by more than 1.75 percentage points in anticipation of the Fed's pivot to policy easing.
U.S. stock markets were set to open in the red on Wednesday, giving back some gains from the previous session’s tech-led rally. Attention will be on continued volatility in Chinese markets and the release of minutes from the Federal Reserve’s September meeting. Dow Jones Industrial Average futures were down 29 points, or 0.1%.
(Bloomberg) -- Billionaire investor Ray Dalio said he doesn’t anticipate the Federal Reserve making “significant cuts in rates,” and that bonds are a risky investment given recent fluctuations in Treasury markets.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Horse Racing to Make Way for HomesChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilShould
U.S. stock futures were rising Tuesday after the previous day’s selloff, which was prompted by rising bond yields. Meanwhile, China’s stock rally lost some momentum after a highly anticipated briefing by the country's top economic planner disappointed investors. Dow Jones Industrial Average futures were up 68 points, or 0.2%.
Big bets in the bond markets are telling investors something important.
Bond yields were climbing early Monday as traders pulled back when it came to how much they expect the Federal Reserve to cut rates, dragging on stocks. Traders are now pricing in a 12% chance of no rate cut at all at the Fed’s November monetary-policy meeting, according to the CME FedWatch tool.
Bitcoin may have bottomed at $60,000 earlier this week, and the Fed easing into a strong economy points to more upside, Will Clement said.
Investors are a bit on edge about inflation, but it’s not a full-blown panic. Inflation is alive and kicking. It’s evident everywhere from your $10 box of blueberries at the grocery store to the cancellation of tours by smaller indie artists because of high travel costs.
