Wall Street closed lower as U.S. service sector data stoked stagflation fears, highlighting challenges for the Federal Reserve. Market turmoil reflects clashes in politics, policy, and earnings. Trump rules out Bessent for Fed chair, U.S. corporate earnings strong but Caterpillar warns on tariffs. Dollar flat, stocks mixed, oil falls.

U.S. service sector data raises stagflation concerns. ISM report shows flat activity but rising price pressures. Wall Street reacts as Treasury yields climb and rate cut expectations are trimmed. Bond and rate futures market shift to hawkish tone. China’s services activity data shows robust expansion.

Trump rules out Bessent for Fed chair, eyes trade deal with China. U.S. markets navigate split personalities amid policy, tariff uncertainties. U.S. corporate earnings strong, but tariff impact looms. Focus on Chinese trade figures and Indian interest rate decision. Market outlook uncertain, calls for nimbleness.

Bond market split widens with short-dated Treasuries reacting to Fed policy, longer maturities sensitive to debt concerns. S&P 500 divided between ‘Magnificent Seven’ tech stocks and others. Big Tech concentration risk debated. U.S. markets face divergences in equities and bonds, calling for nimble strategies.

Read more at Yahoo Finance: Trading Day: Stagflation-ISM