Stocks fell as Fed officials imply less chance of rate cuts, bonds rise

From Investing.com: 2024-04-04 20:40:45

Federal Reserve officials cautioned against aggressive interest-rate cuts, sparking a rise in bond prices and halting a Wall Street stock rally. Global markets initially rose following higher U.S. jobless claims data, but policymakers tempered rate cut expectations. Gold prices hit an all-time high, but Wall Street closed lower. The labor market remains firm.

While layoffs rose, job cuts were steady, signaling a strong labor market with more people finding jobs. The belief in a rate-cutting cycle persists among investors. Bonds rallied as yields fell before Friday’s jobs report. The dollar dropped to a two-week low on expectations of rate cuts, while oil prices rose due to geopolitical tensions.



Read more at Investing.com: Stocks retreat, bonds rally after Fed officials cool rate-cut outlook By Reuters