Stocks stumbled and bond yields marched higher on Tuesday as traders braced for the next rate hike coming out of the Federal Reserve’s September policy meeting.
Yields on the 2-year and 10-year Treasurys touched multi-year highs, fueling concerns that rates may rise even more in the months ahead and hurt equity markets. Meanwhile, Ford's stock recorded its worst day since 2011 as the automaker pre-announced a portion of its third-quarter results.
Investors are looking ahead to the central bank’s rate decision and commentary from Fed Chairman Jerome Powell due out Wednesday. |
Cresset Capital’s Jack Ablin said Tuesday’s market moves suggest investors anticipate a more hawkish stance from the central bank. However, some disagree.
“I don't think it's going to be as aggressive as maybe the market currently fears at this stage, given some of the global growth risks as well as domestic growth risks,” said RBC Wealth Management’s Thomas Garretson.
Like many investors, Garretson is focused on the Fed’s economic projections ahead — which could offer clues into how much further the central bank needs to hike. |
