Fed’s Kashkari Raises the Possibility of No Rate Cuts This Year – US Market Wrap

Stocks fell ahead of Friday’s jobs report, as an oil rally amid geopolitical tensions prompted a flight to the market’s safest havens. Treasuries rose, and the dollar closed near its session high.

The S&P 500 fell 1.2%, wiping out earlier gains, as Brent crude surpassed $90 as Israeli Prime Minister Benjamin Netanyahu stated at a security cabinet meeting that his country will operate against Iran and its proxies while punishing those who seek to harm it. President Joe Biden told Netanyahu during a phone call that US support for his war would be contingent on new measures to protect civilians.

Bond yields fell across the US curve, despite Federal Reserve Bank Minneapolis President Neel Kashkari’s statement that rate cuts may not be required this year if inflation progress stalls. He was among more than a half-dozen central bank officials who spoke ahead of the March jobs report.

Healthy, according to a survey of economists, US employment gains are likely to continue in March, while wage growth has moderated. Payrolls are expected to increase by at least 200,000 for the fourth consecutive month. Average hourly earnings are expected to rise 4.1% from the same month last year, marking the smallest annual increase since mid-2021.