Bond Market Hedges Bets on Rate Hike Amid US Stock Dip

The bond market is bracing for an interest rate hike as investors increasingly believe that the Federal Reserve will take action to curb high inflation.

US stocks, however, took a slight dip in response to comments from Fed Chairman Kevin Warsh, but economists see his words as a reassuring signal that the central bank is committed to controlling inflation, even if it means short-term economic pain.

The S&P 500 fell by 0.2% after fluctuating between small gains and losses throughout the morning session.