Forex
US Stocks Hold Steady Amid Growing Expectations of Rate Hike
US stocks held steady on Friday, despite growing expectations of an interest rate hike by the Federal Reserve to combat high inflation.
The S&P 500 rose 0.3%, while the Dow Jones Industrial Average was up 89 points, or 0.2%, and the Nasdaq composite was 0.3% higher as of 10:45 a.m. Eastern time.
Bond investors reacted strongly to Fed Chairman Kevin Warsh's speech at the annual economic symposium in Jackson Hole, Wyoming, with the two-year Treasury yield jumping to 4.30% from 4.22% just before the speech.
Traders are now betting on a nearly 46% probability of a federal funds rate hike as soon as next month, up from 35% the day before.