The bond market prepares for a hike to interest rates, while US stocks drift lower
The bond market swung Friday as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term.
The S&P 500 fell 0.2% after flipping between modest gains and losses through the morning. The Dow Jones Industrial Average dipped 9 points, or less than 0.1%, and the Nasdaq composite slipped 0.5%.
