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Futures, European Stocks Waver With Banks in Focus: Markets Wrap

(Bloomberg) US stocks fell and Treasuries edged lower ahead of inflation data due later this week as turmoil in the banking sector has cast uncertainty over interest rate hikes from the Federal Reserve. The S&P 500 slipped, snapping a three-day advance, while the tech-heavy Nasdaq 100 was 1% lower. The two-year Treasury yield held just above 4% after a rollercoaster month that saw it as high as 5%. A dollar gauge fell for the eighth time in nine days. “Investors can’t seem to make up their minds as to where stocks should go from here, how the bank crisis will play out, and whether the FOMC’s next move will be a rate hike, a rate pause, or a rate cut,” said Bespoke Investment Group cofounder Paul Hickey. Investors will get a raft of data on the American economy this week, including on the central bank’s preferred measure of inflation, after US consumer confidence unexpectedly improved in March. Federal Reserve officials will also testify before Congress on the collapse of re

US Futures, Europe Stocks Waver as Banks in Focus: Markets Wrap

(Bloomberg) US stocks were little changed and Treasuries edged lower as uncertainty over the path of the Federal Reserve’s interest-rate hikes continued to plague markets in the wake of three US bank collapses. St. Louis Fed President James Bullard said “appropriate monetary policy can continue to put downward pressure on inflation” despite the turmoil. Meanwhile, US consumers appear to have shrugged off the bank failures, with the latest consumer confidence figures unexpectedly higher. The S&P 500 drifted lower, snapping a three-day advance, while the two-year Treasury yield held just above 4%. “Investors can’t seem to make up their minds as to where stocks should go from here, how the bank crisis will play out, and whether the FOMC’s next move will be a rate hike, a rate pause, or a rate cut,” said Bespoke Investment Group cofounder Paul Hickey. Swaps traders have priced in more than a 50% probability that the Federal Reserve will lift rates by a quarter point at its

US Stocks Decline as Treasuries Churn; Dollar Dips: Markets Wrap

(Bloomberg) A slide in technology shares halted a three-day advance in US stocks as investors continued to recalibrate bets on the Federal Reserve’s path forward on interest rates. Treasuries drifted lower. The Nasdaq 100 slumped 0.5% paring a March advance to 4.7% with tech stalwarts from Apple Inc. to Alphabet Inc. among the biggest drags. Tech stocks had found favor in recent weeks with the rotation out of financials following the collapse of three US banks. However, the trade has started to unwind with increased speculation turbulence in the banking sector will be contained. Two-year Treasury yields edged to just above 4%, while a gauge of the dollar notched its lowest close in eight weeks. “Part of the giant bid in Treasuries last week was fear of contagion in financials,” said Tom Hearden, senior trader at Skylands Capital LLC. “That’s abated so far this week” with thin markets, off side positioning, and a financial contagion bid. The moves come as investors pre

Stocks Pare Loss as Bonds Edge Lower; Dollar Dips: Markets Wrap

(Bloomberg) US stocks were little changed and Treasuries edged lower as uncertainty over the path of the Federal Reserve’s interest-rate hikes continued to plague markets in the wake of three US bank collapses. St. Louis Fed President James Bullard said “appropriate monetary policy can continue to put downward pressure on inflation” despite the turmoil. Meanwhile, US consumers appear to have shrugged off the bank failures, with the latest consumer confidence figures unexpectedly higher. The S&P 500 drifted lower, snapping a three-day advance, while the two-year Treasury yield held just above 4%. “Investors can’t seem to make up their minds as to where stocks should go from here, how the bank crisis will play out, and whether the FOMC’s next move will be a rate hike, a rate pause, or a rate cut,” said Bespoke Investment Group cofounder Paul Hickey. Swaps traders have priced in more than a 50% probability that the Federal Reserve will lift rates by a quarter point at its

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