Stocks Surge as Traders Dial Back Fed-Hike Wagers: Markets Wrap
Stocks rallied and bond yields sank as softer-than-forecast inflation data fueled bets the Federal Reserve could pivot to a smaller pace of hikes — a view taken with a grain of salt by market watchers saying officials may still be a long ways from achieving their goal.
Traders went risk-on Wednesday, with the S&P 500 on pace for its highest level since May. A surge in the Nasdaq 100 drove the tech-heavy gauge almost 20% above its June low. The Cboe Volatility Index slumped below 20, a level last seen in April. The dollar fell against all of its Group-of-10 peers. Short-dated Treasury yields led the slide, with the two-year rate at one stage plummeting nearly 20 basis points to 3.07%.