Highlights
Equities slipped Tuesday on risk aversion as investors appeared to regret previous confidence about near-term Federal Reserve rate cuts. The Dow Jones industrial average declined 0.6 percent, the S&P 500 percent dipped 0.4 percent, and the Nasdaq was off 0.2 percent. US Treasury yields rose while oil prices and the dollar declined.
Bond yields rose, with the 10-year note back well above 4 percent, and equities slipped after Fed Governor Christopher Waller said he was confident that rates were headed lower but officials were in no rush to act, and needed more confirmation from inflation and other economic data. Investors pared expectations for an initial rate cut in March, though the CME FedWatch tool still sees a 65 percent chance of a first rate cut then.
Oil prices fell as markets were in risk-off mode despite upward price pressures flowing from lower output due to cold US weather and concern about supply disruptions from the Middle East. Markets appear hesitant about putting on risk with earnings season about to get under way and major stock averages near record highs.
The Dow and industrials had a bad day as Boeing shares suffered from the airplane maker's latest problems with the 737 Max. Among sectors, worst hit were energy, materials, financials, industrials and real estate. Information technology held up relatively well.
Bond yields rose, with the 10-year note back well above 4 percent, and equities slipped after Fed Governor Christopher Waller said he was confident that rates were headed lower but officials were in no rush to act, and needed more confirmation from inflation and other economic data. Investors pared expectations for an initial rate cut in March, though the CME FedWatch tool still sees a 65 percent chance of a first rate cut then.
Oil prices fell as markets were in risk-off mode despite upward price pressures flowing from lower output due to cold US weather and concern about supply disruptions from the Middle East. Markets appear hesitant about putting on risk with earnings season about to get under way and major stock averages near record highs.
The Dow and industrials had a bad day as Boeing shares suffered from the airplane maker's latest problems with the 737 Max. Among sectors, worst hit were energy, materials, financials, industrials and real estate. Information technology held up relatively well.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
