"The major indices started the day hitting new all-time highs on Wednesday, but sank in the afternoon after Fed Chairman Powell suggested that a December rate cut is not a given and that data between now and the December meeting will be used to gauge the need for another cut. While the Fed did cut rates by 25 basis points yesterday, it was largely priced in."
"The Treasury complex took the biggest hit on Wednesday, when the Chairman downplayed the potential for a December rate cut. Yields were higher across the curve after moving lower in anticipation of the Fed meeting. Record mortgage refinancing may take a breather with higher yields moving mortgage rates higher. The benchmark 10-year note closed the day at a 4.08% yield after trading below 4% recently."
Futures traded lower ahead of Friday as equity markets reacted to Fed commentary reducing the likelihood of a December rate cut. Major indices hit all-time highs earlier but declined after Chairman Powell said data between now and December will determine further easing. The Fed cut 25 basis points, which had been largely priced in. The Dow, S&P 500 and Russell 2000 closed lower, while the NASDAQ rose ahead of third-quarter reports from Amazon and Apple and after results from Alphabet, Microsoft and Meta. Treasury yields rose across the curve, with the 10-year at 4.08%. Oil rose modestly; natural gas was flat. Gold reversed earlier gains and closed modestly lower amid recent volatility.
Read at 24/7 Wall St.
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