Weak Manufacturing Data Fuels Fed Bets – US Market Wrap

Bonds rose after a dismal manufacturing report reinforced expectations that the Federal Reserve may have the capacity to decrease interest rates this year. Stocks changed as the rise in technology outweighed the decline in energy producers.

Longer-dated Treasuries outperformed as statistics revealed that US industry activity dropped at a quicker rate than output, approaching stagnation.

US 10-year yields fell nine basis points to 4.4%. The S&P 500 was hovering around 5,280. A technical glitch at the New York Stock Exchange caused incorrect trade volatility halts early Monday.

Oil fell as OPEC+ unexpectedly announced a proposal to restore some supply to the market this year. Bitcoin momentarily exceeded $70,000.

In reality, traders will be looking at a plethora of labor-market measures this week, including Friday’s payrolls figures. This comes ahead of the Fed’s decision next week, when policymakers in the United States are expected to express no rush to lower interest rates.

Swap contracts connected to next meetings continue to completely price in a quarter-point rate decrease in December, with the probability of a move as early as September increasing to approximately 50%, and November also being given significant odds.