- US stocks fell as the 10-year bond yield jumped over 11 basis points, nearing 4.7%.
- Fed officials Michael Barr and Michelle Bowman both sounded hawkish at an event.
US stocks finished mixed Monday as comments from Federal Reserve officials gave investors reason to expect restrictive policy to continue.
While Fed Chairman Jerome Powell did not provide clear guidance on monetary policy during a roundtable discussion, Governor Michelle Bowman said multiple rate hikes will still be necessary to reach a 2% inflation rate, especially given rising energy prices.
Meanwhile, Vice Chair for Supervision Michael Barr noted that rates may need to remain elevated for longer, estimating that it may take a while to achieve the Fed's goals.
Through the day, bond traders continued to sell off Treasury holdings, causing the 10-year bond yield to swing up 11.4 basis points to 4.685%.
Meanwhile, data on Monday pointed to continued economic resiliency in the third quarter. An Institute for Supply Management report showed manufacturing improved in September.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
- S&P 500: 4,288.39, up 0.01%
- Dow Jones Industrial Average: 33,433.35, down 0.22% (74.15 points)
- Nasdaq Composite: 13,307.77, up 0.67%
Here's what else happened today:
- Bill Ackman said interest rate hikes are likely over, but warned that their effects will still be felt.
- Sphere Entertainment stock jumped 17% on videos of U2's concert in the mind-blowing Las Vegas venue.
- Millennials are taking on the most interest rate pain, especially compared to baby boomers.
- The top seven tech stocks are trading at their biggest discount in six years, Goldman Sachs said.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 2.6% to $89.04 a barrel. Brent crude, the international benchmark, dropped 1.88% to $90.46 a barrel.
- Gold stayed essentially flat at $1,829.53 per ounce.
- The yield on the 10-year Treasury surged 11.4 basis points to 4.685%.
- Bitcoin remained essentially flat at $27,824.