Tech outperforms as rate-hike bets retreat
SPY•U.S. stocks ended mixed after cooler-than-expected inflation data reduced expectations of an October Federal Reserve rate hike: the Nasdaq rose about 0.2%, while the S&P 500 fell about 0.3% and the Dow lost about 0.9%. The 10-year Treasury yield reached 5.3061% before easing to around 5.29%.
1. Stocks finish mixed
The Nasdaq ended higher as technology shares outperformed, while the S&P 500 and Dow declined. Technology gained 0.6%, while consumer staples fell about 1.7%, the steepest decline among S&P 500 sectors.
2. Rate-hike bets ease
Cooler-than-expected inflation data led traders to scale back expectations for an October rate hike. The odds of the Federal Reserve holding rates steady at its October 27-28 meeting rose to 63% from 55% before the report, while the probability of a quarter-point hike fell to 37% from 45%.
3. Yields remain elevated
The 10-year Treasury yield climbed to 5.3061%, its highest level since June 2007, before easing to around 5.29%. For September, the S&P 500 fell 0.45%, the Nasdaq gained 1.9% and the Dow dropped 4.3%.
