US Stocks Pause As Treasury Yields, Dollar Surge On Trimmed Fed Rate Cut Bets: What’s Driving Markets Tuesday?
Wall Street took a breather on Tuesday, with the major U.S. stock indices trading near the flatline or showing slight declines during midday trading in New York as investors closely await a series of relevant earnings reports and crucial economic data slated for the remainder of the week.
Both the S&P 500 and the Nasdaq 100 remained stable at their respective all-time highs, while the Dow experienced a slight decrease of 0.4%. Small caps, as represented by the iShares Russell 2000 ETF (NYSE:IWM), weakened by 0.7%.
The dollar and Treasury yields moved higher, likely exerting some resistance on the stock market’s rally. The likelihood of a Fed rate cut in March has decreased to 40% and traders now anticipate a total of five rate cuts, down from six, by December 2024.
With yields rising across various Treasury maturities, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) declined by 1.1%.
Chinese stocks traded in New York saw a strong jump as Beijing announced …
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