US Bonds Fall as Trump Ruffles Fed Chair Bets – US Market Wrap

Hopes for another strong session across asset classes faded by midday amid concerns that Trump is cooling on his dovish front-runner to lead the Fed.

Treasuries fell across the curve as traders slightly pared back expectations for Fed rate cuts this year. The S&P 500 struggled to gain momentum on Friday and was headed for a weekly decline despite a rally in major chipmakers. Small caps continued to advance, with the Russell 2000 outperforming the broader US equity benchmark for an 11th straight session.

Trump said on Friday that losing Kevin Hassett from his role as director of the White House National Economic Council would deprive the administration of one of its most effective economic messengers. Hassett has been viewed as a leading candidate to succeed Fed Chair Powell.

The S&P 500 was little changed. A closely watched gauge of chipmakers rose 1.1%. The Russell 2000 added 0.1%. The yield on 10-year Treasuries climbed six basis points to 4.22%. The dollar wavered. US markets will be closed on Monday for a federal holiday.