Daily Dose

Bonds Help S&P Futures As Rate Jitters Ease – Europe Market Wrap

Treasuries and stocks both rose as world markets steadied following volatility caused by misplaced wagers on the size and timing of Fed interest rate decreases.

At the Wall Street open, US futures indicated that the S&P 500 would see its first advances in five days. The largest contract chipmaker in the world, Taiwan Semiconductor Manufacturing, saw growth spurred by strong AI demand, and it announced its first profit increase in a year. The dollar index remained unchanged, and 10-year Treasury rates decreased by 2 basis points to 4.57%.

As investors adjust to a robust US economy and persistent inflation that has pushed them to recalculate rate bets, they are reversing profits from a record run in the first quarter.

Money markets predict that the Fed will only lower rates twice this year, beginning in September, following another wave of sizzling inflation that drove Treasury yields skyrocketing to levels not seen since 2024.